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Drug Production Costs Transparency Requirements

Concerning a requirement that drug manufacturers report production costs for certain high-cost prescription drugs.

HB16-1102 2016 Regular Session Not stated Health Care & Health Insurance

Cost estimates

At the first note read
$100,000
FACT February 1, 2016
At the last note read
$100,000
FACT September 6, 2016
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill requires money it does not carry — the note says an appropriation is required and does not say the bill includes one.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: $100,000 - Department of Public Health and Environment (FY 2016-17).

Bill summary

The bill requires a drug manufacturer that produces a prescription drug made available in Colorado and for which the wholesale acquisition cost equals or exceeds $50,000 per year or per course of treatment to submit a report to the Colorado commission on affordable health care (commission) detailing the production costs for the drug. The report is to include:

  • Costs for research and development;
  • Clinical trials and regulatory costs;
  • Costs for materials, manufacturing, and administration attributable to the drug;
  • Costs paid by another entity, including grants, subsidies, or other support;
  • Acquisition costs, including patents and licensing costs;
  • Marketing and advertising costs.

Additionally, a manufacturer must report the cumulative annual history of increases in the average wholesale price and wholesale acquisition cost of the drug, the total company profits attributable to the drug, and the total amount of financial assistance the manufacturer has provided through patient prescription assistance programs.

Manufacturers must submit the report to the commission by August 1, 2016.

By June 1, 2016, the commission must develop a form for manufacturers to use to submit the report. Additionally, the commission is to submit a report to the general assembly by December 1, 2016, that outlines the information reported by drug manufacturers and contains any recommendations the commission may have regarding legislative, administrative, or other policy changes based on the data received from drug manufacturers.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)