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Bill

S 895

An Act to promote transparency and prevent price gouging of pharmaceutical drug prices

194th Legislature (2025-2026) Introduced by Mark Montigny

Massachusetts bill requiring pharmaceutical companies to disclose pricing rationales and establishing state oversight to prevent excessive drug price increases.

Accompanied S868
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Bill Summary · S 895

Legislative bill overview

S 895 seeks to increase transparency in pharmaceutical pricing and establish mechanisms to prevent excessive price increases on drugs in Massachusetts. The bill requires drug manufacturers to disclose pricing justifications and potentially allows the state to intervene when prices are deemed unreasonably high. It was referred to the Health Care Financing Committee in February 2025 and had a hearing scheduled for June.

Why is this important

Pharmaceutical costs are a major driver of healthcare expenses for Massachusetts residents and insurers. Price transparency and anti-gouging measures could help identify unjustified price increases, potentially reducing out-of-pocket costs and overall healthcare spending. However, implementation details significantly affect whether the bill achieves meaningful results or creates burdensome compliance requirements.

Potential points of contention

  • Industry compliance costs: Pharmaceutical manufacturers may argue that detailed pricing disclosure requirements impose administrative burdens and could discourage investment in drug development
  • Definition of "price gouging": The bill must define what constitutes unreasonable pricing increases; too strict a standard could limit legitimate price adjustments, while too loose a standard may fail to prevent actual gouging
  • State enforcement authority: Questions about whether Massachusetts can unilaterally regulate drug pricing without conflicting with federal law or interstate commerce, and how aggressively the state would enforce any restrictions

Compiled from official sources — confirm details with the bill’s official record.

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