MADISON (WKOW) -- A high profile Wisconsin Democrat and high-ranking Republican are banding together to take on the soaring prices of prescribed medication.
Sen. Tammy Baldwin (D-W) and Sen.John McCain (R-AZ) have introduced the F.A.I.R. Drug Pricing Act.
With prices of medication continuing to skyrocket, the two senators are calling for more transparency and accountability from drug manufacturers. The F.A.I.R. Drug Pricing Act will require pharmaceutical companies to provide justification report 30 days before any price hike on drugs costing over $100 to the U.S. Department of Health.
The rule specifically affects price increases that are more than 10% in one year, or 25% over three years.
Companies would also be required to justify the increase and report costs used for any research and development, and marketing and advertising.
"What we found was a pattern of certain, what I call hedgefund pharma companies buying the rights to a drug, and then overnight increasing the cost as much as five thousand percent," said Sen. Susan Collins (R-ME).
Senators Baldwin and McCain hope with this act, transparency will provide more context for consumers and policymakers on how prices are set.
The bill will not prevent the manufacturers from increasing their drug prices, but for the first time, it will give taxpayers notice of any price increase and how prices are set.