The General Assembly finds and declares as follows:
(1) The Commonwealth, through assistance programs enacted for the benefit of its citizens,
is the largest single payor of prescription medications in Pennsylvania.
(2) In order to ensure that the Commonwealth, in expending money on behalf of its
citizens, is not unduly harmed by being required to pay a price for pharmaceutical
products purchased from manufacturers in excess of that established for other purchasers
and reimbursers of these products and to ensure that the Commonwealth can efficiently
and prudently expend its money and maximize its ability to provide for the health
and welfare of as many of its needy citizens as possible, it is reasonable, necessary
and in the public interest to require that pharmaceutical manufacturers offer a discount
to the Commonwealth for pharmaceutical products purchased or reimbursed through State
(3) It is in the public interest for pharmaceutical manufacturers to provide the Commonwealth
with data relating to the price of pharmaceutical products sold by the manufacturer
to public bodies, hospitals, for-profit or nonprofit organizations, other manufacturers
or wholesalers doing business in this Commonwealth in order to ensure that the Commonwealth
can determine that it is being provided with the best prices offered by the manufacturer.
(4) On a national level, there has been a recognition that the need for discounts
to State Medicaid agencies, which reimburse for a high volume of pharmaceutical products,
(5) On a State level, the General Assembly recognizes that it is in the best interest
of its citizens to provide pharmaceutical assistance in a reasonable and cost-efficient
(6) Drug price inflation has caused an increase in the amount of public funds expended
by PACE and General Assistance.
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