On April 2, 2025, the Connecticut State Legislature introduced Substitute Bill No. 11, aimed at regulating prescription drug pricing within the state. The bill seeks to address the growing concern over the affordability of medications by imposing civil penalties on pharmaceutical manufacturers and wholesale distributors that exceed established reference prices for certain prescription drugs.

Key provisions of the bill include a framework for determining the reference price of identified prescription drugs, which will be adjusted annually based on the consumer price index. If a manufacturer or distributor sells a drug above this reference price, they may face civil penalties calculated based on the revenue they would have earned had they adhered to the price cap. However, the bill stipulates that only those entities with total annual sales exceeding $250,000 in Connecticut will be subject to these penalties.

The legislation is set to take effect for calendar years starting January 1, 2026, requiring violators to pay penalties and submit annual statements to the state by March 1 of the following year. This electronic filing process aims to streamline compliance and enforcement.

Debate surrounding Senate Bill 11 has highlighted concerns from various stakeholders. Proponents argue that the bill is a necessary step toward making healthcare more accessible and affordable for Connecticut residents, particularly those struggling with high prescription costs. Critics, however, warn that imposing price controls could lead to reduced investment in drug development and potential shortages of essential medications.

The implications of this bill are significant, as it could set a precedent for other states considering similar measures. Experts suggest that if successful, Connecticut's approach may inspire broader national discussions on pharmaceutical pricing reform. Conversely, if the bill faces legal challenges or fails to achieve its intended outcomes, it could lead to further complications in the state's healthcare landscape.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential impact on both the pharmaceutical industry and consumers in Connecticut.