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New York Passes Drug Price Transparency Law, With Push From AARP

black woman holding open prescription pill bottle
Catherine McQueen/Getty Images

En español | Drugmakers will need to disclose and justify any substantial price increases to New York state officials, thanks in large part to advocacy from AARP New York.

Under a law signed by Gov. Kathy Hochul last month, drugmakers must give state officials 60 days’ notice of price increases on their prescription drugs if, when combined with prior increases, the price will rise by 16 percent or more over two years. Companies that violate the law face penalties of up to $5,000 a day.

Our New York state office led dozens of advocacy groups in pushing for the drug price transparency bill last year. We delivered more than 3,000 letters from our members to Hochul’s office urging her to sign the bill, which was sponsored by Sen. Julia Salazar and former Assembly member Dan Rosenthal.

The law will help millions of New Yorkers who rely on life-sustaining medications. Some people have resorted to rationing doses because they can’t afford the high price of their prescriptions, said AARP New York State Director Beth Finkel. States with similar price transparency laws have seen fewer and lower price increases, she said.

“Governor Hochul has taken a significant step toward fighting ever-increasing prescription drug prices by standing up to the big drug companies — and standing with New Yorkers,” Finkel said.

New York joins 20 other states, including California, Connecticut, New Jersey, Texas and Vermont, that have enacted drug price transparency laws, which AARP has advocated for around the country.

In 2023, we endorsed federal legislation that would require drugmakers to disclose prices in prescription drug ads and increase transparency in the prescription drug supply chain, among other measures.

The efforts build on our work to help pass a historic prescription drug law in 2022 which is lowering prices for millions of Medicare enrollees.

Learn more about how AARP is fighting to lower prescription drug costs, and keep up with our advocacy work in New York.

Natalie Missakian covers federal and state policy and writes AARP’s Fighting for You Every Day blog. She previously worked as a reporter for the New Haven Register and daily newspapers in Ohio. Her work has also appeared in the AARP Bulletin, the Hartford Business Journal and other publications.

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