Council OKs Bill on Suing Drug Companies Over Costs
Tuesday, September 20, 2005
The D.C. Council approved legislation today that would make it illegal for pharmaceutical companies to sell prescription drugs at an "excessive price" in the District.
The drug bill, which passed unanimously, would give consumers and the District government a legal advantage when suing pharmaceutical companies over high prescription drug prices. It puts the burden of proof on pharmaceutical companies to show their prices are not "excessive."
The legislation defines excessive as being 30 percent over the comparative price in Germany, Canada, Australia or the United Kingdom. The bill would allow civil penalties on the drug maker.
The pharmaceutical industry opposes the measure. Mayor Anthony A. Williams (D) will sign the bill, said spokeswoman Sharon Gang.
Council member David A. Catania (I-At Large), the author of the bill, said it was a consumer protection measure that would ease the increasing financial burden of prescription drugs.
"This is not price control, this is not price fixing," he said. It would simply require the industry to show that its prices are justified to recoup research and other costs, he said.
Catania, chairman of the council's health panel, said the District's bill is the first in the nation and he has fielded inquiries from legislators in other states, such as Maine, who are interested in introducing similar bills.
The council today also approved emergency legislation to waive residency, identification and other requirements for social services provided to victims of Hurricane Katrina.
Catania, who introduced the bill, said it was needed because many of the victims brought to the D.C. Armory came only with the clothes on their backs and do not have legal identification, pay stubs, Social Security cards and other documents needed to ordinarily enroll in social services. The waivers would be retroactive to the date of the hurricane.
The measure passed unanimously, but some council members said they would like to see the same swift District government response that Katrina victims received be extended to District residents who have been lingering on waiting lists and tied up in red tape.
"We do what was necessary for those who came to the District from the Gulf Coast, but we did not use the same techniques and commitment for those who have been here for years," said Council member Vincent C. Gray (D-Ward 7). "Let's continue to reach out to those in the District of Columbia who are in similar conditions for different reasons."
The council also passed legislation that would allow for the establishment of off-leash dog parks on District or federal park land. The dog parks would have to be fully enclosed by fencing. Williams will also sign that bill, Gang said.
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