Prescription Drug Price Disclosure Program
In 2019, the 86th Texas Legislature passed House Bill 2536, relating to drug cost transparency. HB 2536 added new Chapter 441, Drug Cost Transparency, to the Texas Health and Safety Code. Chapter 441 requires pharmaceutical drug manufacturers to report to the Health and Human Services Commission (HHSC) the current wholesale acquisition cost (WAC) of U.S. Food and Drug Administration-approved drugs sold in or into Texas. Pharmaceutical drug manufacturers also are required to separately report specific information related to WAC increases. Drug cost information will be available to the public on this website.
HB 2536 also made changes to the Texas Insurance Code regarding health benefit plan issuers and pharmacy benefit managers. This part of the legislation is being implemented by the Texas Department of Insurance (TDI). Please contact TDI for information on this portion of the new law.
The Prescription Drug Price Disclosure Program (formerly called Drug Cost Transparency Program) has been moved from the Health and Human Services to the Texas Department of State Health Services beginning Sept. 1, 2021.
In 2021, the 87th Texas Legislature passed House Bill 1033 relating to prescription drug price disclosure. The bill amended Health and Safety Code, Chapter 441, entitled Drug Cost Transparency. Changes included transfer of the program to the Department of State Health Services, promulgation of rules, changes to the required submission of data, establishment of a fee and procedures for administrative penalties.
The Texas Department of State Health Services (DSHS) has completed implementation of the Prescription Drug Price Disclosure Program. The 2024 Annual WAC and Price Increase Reports are available on the Data Overview webpage. Annual WAC and Price Increase Reports for 2020, 2021, 2022 and 2023 are also available. Reporting and data collection is ongoing and updated every 60 days to the website.
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