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- 83rd Session (2025)
Assembly Bill No. 259–Assemblymembers
Considine; and Anderson
CHAPTER..........
AN ACT relating to health care; prohibiting certain actions related
to pricing and reimbursement for certain drugs; creating a
cause of action for violating such prohibitions; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing federal law establishes the Medicare program, which is a public health
insurance program for persons 65 years of age and older and specified persons with
disabilities who are under 65 years of age. (42 U.S.C. §§ 1395 et seq.) Existing
federal law requires the United States Secretary of Health and Human Services to
negotiate with the manufacturers of certain drugs and to establish the maximum fair
price for certain drugs, which is the maximum price at which such drugs may be
sold to a recipien t of Medicare. (42 U.S.C. §§ 1320f -2, 1320f-3) Existing federal
law requires the Secretary of Health and Human Services to publish those
maximum fair prices. (42 U.S.C. § 1320f-4) Section 1 of this bill prohibits a person
or entity that: (1) purchases a dr ug which is subject to a maximum fair price in this
State from paying a price that is higher than the maximum fair price; or (2) seeks
reimbursement for a drug subject to a maximum fair price which is delivered,
dispensed or administered to a person in this State from seeking reimbursement at a
rate which is higher than the maximum fair price. Section 1 exempts from such
prohibitions certain providers of health coverage under federal law but prescribes a
procedure by which such a provider of health coverage may elect to be subject to
the provisions of section 1.
Existing law: (1) prohibits certain trade practices which are deemed to be
deceptive trade practices; and (2) provides for the enforcement of the prohibition on
engaging in deceptive trade practices, including by prescribing criminal penalties to
be imposed against a person who engages in a deceptive trade practice. (NRS
598.0903-598.0999) Section 1 makes it a deceptive trade practice for any person to
violate the prohibition on purchasing or seeking reimbursement for a drug at a price
higher than the maximum fair price. Sections 1 and 3 of this bill provide that a
person who violates the provisions of section 1 is not subject to any criminal
penalty set forth in existing law for engaging in a decepti ve trade practice, meaning
such a person is subject only to the various civil enforcement measures, including
civil penalties, set forth in existing law for engaging in a deceptive trade practice.
(NRS 598.097-598.0999)
Existing law authorizes any person who is a victim of consumer fraud,
including a deceptive trade practice, to bring a civil action. (NRS 41.600) Section 2
of this bill provides that a violation of section 1 constitutes consumer fraud, and
sections 1 and 2 authorize a victim of such a violation to bring a civil action.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
WHEREAS, In the 2019 Legislative Session, Senate Bill No. 276
directed the Legislative Commission to appoint a committee to
conduct an interim study concerning the cost of prescription drugs
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in this State and the impact of rebates, reductions in price and other
remuneration from manufacturers on prescription drug prices; and
WHEREAS, In reporting on the findings of the Committee to
Conduct an Interim Study Concerning the Costs of Prescription
Drugs, LCB Bulletin No. 21 -9, published in January 2021, stated
that “[i]n 2018, Amer icans paid an average of $1,229 for
prescription drugs, the highest amount per capita in any developed
country in the world”; and
WHEREAS, LCB Bulletin No. 21 -9 also stated that “[i]ncreasing
drug prices disproportionately affect uninsured and underinsure d
patients, while insured patients covered by high -deductible,
commercial, or government -sponsored health insurance plans tend
to pay more through premium and co-pay increases”; and
WHEREAS, The Nevada Spending and Government Efficiency
Commission noted in its final report, “Final Report of the Nevada
Spending and Government Efficiency Commission to Governor Jim
Gibbons,” published January 7, 2010, that the State of Nevada
would realize significant savings on Medicaid, mental health,
corrections and other programs if the cost of prescription drugs were
better controlled; and
WHEREAS, Excessive prices negatively affect the ability of
residents of this State to obtain prescription drugs, thereby
endangering the health and safety of such residents; and
WHEREAS, Excessive prices of prescription drugs threaten the
economic well -being of residents of this State, thereby inhibiting
their ability to pay for necessary and essential goods and services
including housing, food and utilities; and
WHEREAS, Excessive c osts of prescription drugs contribute
significantly to increasing costs of health care and health insurance
that threaten the ability of residents of this State to obtain affordable
health coverage and maintain or achieve good health; and
WHEREAS, Excessive costs of prescription drugs contribute
significantly to rising costs for health care provided and paid for
through health insurance programs for public employees, including
employees of the State, municipalities, counties, school districts and
institutions for higher education and retirees whose health costs are
funded by taxpayer dollars, thereby threatening the ability of the
State and local governments to fund other programs necessary for
the public good and safety, such as public safety, polic e, fire and
education; and
WHEREAS, To protect residents of this State from the negative
effects from excessive costs of prescription drugs, and to protect the
safety, health and economic well-being of Nevadans, the Legislature
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finds that legislation rega rding affordable access to prescription
drugs is necessary for residents of this State to achieve and maintain
good health; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 439B of NRS is hereby amended by adding
thereto a new section to read as follows:
1. Except as otherwise provided in subsection 7, a person or
entity that purchases a refe renced drug in this State shall not pay
a price for the referenced drug that, excluding any fee paid to a
pharmacy for dispensing the referenced drug, is higher than the
maximum fair price for that referenced drug during the price
applicability period.
2. Except as otherwise provided in subsection 7, a person or
entity that seeks reimbursement for a referenced drug which is
delivered, dispensed or administered to a person in this State shall
not seek reimbursement for the referenced drug at a rate which,
excluding any fee paid to a pharmacy for dispensing the
referenced drug, is higher than the maximum fair price for that
referenced drug during the price applicability period.
3. Except as otherwise provided in subsection 4, a violation of
subsection 1 or 2 by any person constitutes a deceptive trade
practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
Each such violation of subsection 1 or 2 constitutes a separate
deceptive trade practice.
4. A person who violates the provisions of subsection 1 or 2 is
not subject to any criminal penalty set forth in subsection 3 of
NRS 598.0999.
5. A person aggrieved by a violation of subsection 1 or 2 may
bring an action for consumer fraud pursuant to NRS 41.600.
6. The Department may adopt any regul ations necessary to
carry out the provisions of this section.
7. A provider of health coverage for federal employees, a
provider of health coverage that is subject to the Employee
Retirement Income Security Act of 1974 or a Taft -Hartley trust
formed pursuant to 29 U.S.C. § 186(c)(5):
(a) Is not required to comply with the requirements of this
section.
(b) May elect to be subject to the provisions of this section by
notifying the Director in writing on or before January 1 of each
year in which the provider or trust, as applicable, elects to
participate.
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8. As used in this section:
(a) “Maximum fair price” means the maximum fair price for a
drug published by the United States Secretary of Health and
Human Services pursuant to 42 U.S.C. § 1320f-4.
(b) “Price applicability period” has the meaning ascribed to it
in 42 U.S.C. § 1320f(b)(2).
(c) “Referenced drug” means a drug subject to a maximum
fair price.
Sec. 2. NRS 41.600 is hereby amended to read as follows:
41.600 1. An action may be brought by any person who is a
victim of consumer fraud.
2. As used in this section, “consumer fraud” means:
(a) An unlawful act as defined in NRS 119.330;
(b) An unlawful act as defined in NRS 205.2747;
(c) An act prohibited by NRS 482.36655 to 482.36667,
inclusive;
(d) An act prohibited by NRS 482.351;
(e) A deceptive trade practice as defined in NRS 598.0915 to
598.0925, inclusive; [or]
(f) A violation of NRS 417.133 or 417.135 [.] ; or
(g) A violation of section 1 of this act.
3. If the claimant is the prevailing party, the court shall award
the claimant:
(a) Any damages that the claimant has sustained;
(b) Any equitable relief that the court deems appropriate; and
(c) The claimant’s costs in the action and reasonable attorney’s
fees.
4. Any action brought pursuant to this section is not an action
upon any contract underlying the original transaction.
Sec. 3. NRS 598.0999 is hereby amended to read as follows:
598.0999 1. Except as otherwise provided in NRS 598.0974,
a person who violates a court order or injunction issued pursuant to
the provisions of NRS 598.0903 to 598.0999, inclusive, upon a
complaint brought by the Commissioner, the Director, the district
attorney of a ny county of this State or the Attorney General shall
forfeit and pay to the State General Fund a civil penalty of not more
than $10,000 for each violation. For the purpose of this section, the
court issuing the order or injunction retains jurisdiction ove r the
action or proceeding. Such civil penalties are in addition to any
other penalty or remedy available for the enforcement of the
provisions of NRS 598.0903 to 598.0999, inclusive.
2. Except as otherwise provided in NRS 598.0974, in any
action brought pursuant to the provisions of NRS 598.0903 to
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598.0999, inclusive, if the court finds that a person has willfully
engaged in a deceptive trade practice, the Commissioner, the
Director, the district attorney of any county in this State or the
Attorney General bringing the action may recover a civil penalty not
to exceed $15,000 for each violation. The court in any such action
may, in addition to any other relief or reimbursement, award
reasonable attorney’s fees and costs.
3. [A] Except as otherwise provided in section 1 of this act, a
natural person, firm, or any officer or managing agent of any
corporation or association who knowingly and willfully engages in a
deceptive trade practice:
(a) For an offense involving a loss of property or services valued
at $1,200 or more but less than $5,000, is guilty of a category D
felony and shall be punished as provided in NRS 193.130.
(b) For an offense involving a loss of property or services
valued at $5,000 or more but less than $25,000, is guilty of a
category C felony and shall be punished as provided in
NRS 193.130.
(c) For an offense involving a loss of property or services valued
at $25,000 or more but less than $100,000, is guilty of a category B
felony and shall be punished by imprisonment in the state p rison for
a minimum term of not less than 1 year and a maximum term of not
more than 10 years, and by a fine of not more than $10,000.
(d) For an offense involving a loss of property or services
valued at $100,000 or more, is guilty of a category B felony and
shall be punished by imprisonment in the state prison for a
minimum term of not less than 1 year and a maximum term of not
more than 20 years, and by a fine of not more than $15,000.
(e) For any offense other than an offense described in
paragraphs (a) to (d), inclusive, is guilty of a misdemeanor.
The court may require the natural person, firm, or officer or
managing agent of the corporation or association to pay to the
aggrieved party damages on all profits derived from the knowing
and willful engagement in a deceptive trade practice and treble
damages on all damages suffered by reason of the deceptive trade
practice.
4. If a person violates any provision of NRS 598.0903 to
598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.405
to 598.525, inclusive, 598.741 to 598.787, inclusive, 598.840 to
598.966, inclusive, or 598.9701 to 598.9718, inclusive, fails to
comply with a judgment or order of any court in this State
concerning a violation of such a provision, or fails to comply with
an assurance of discontinuance or other agreement concerning an
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alleged violation of such a provision, the Commissioner or the
district attorney of any county may bring an action in the name of
the State of Nevada seeking:
(a) The suspension of the person’s privilege to conduct business
within this State; or
(b) If the defendant is a corporation, dissolution of the
corporation.
The court may grant or deny the relief sought or may order other
appropriate relief.
5. If a person violates any provision of NRS 228.500 to
228.640, inclusive, fails to comply with a j udgment or order of any
court in this State concerning a violation of such a provision, or fails
to comply with an assurance of discontinuance or other agreement
concerning an alleged violation of such a provision, the Attorney
General may bring an action in the name of the State of Nevada
seeking:
(a) The suspension of the person’s privilege to conduct business
within this State; or
(b) If the defendant is a corporation, dissolution of the
corporation.
The court may grant or deny the relief sought or may order other
appropriate relief.
6. In an action brought by the Commissioner or the Attorney
General pursuant to subsection 4 or 5, process may be served by an
employee of the Consumer Affairs Unit of the Department of
Business and Industry or an employee of the Attorney General.
7. As used in this section:
(a) “Property” has the meaning ascribed to it in NRS 193.0225.
(b) “Services” has the meaning ascribed to it in NRS 205.0829.
(c) “Value” mean s the fair market value of the property or
services at the time the deceptive trade practice occurred. The value
of a written instrument which does not have a readily ascertainable
market value is the greater of the face amount of the instrument less
the portion satisfied or the amount of economic loss to the owner of
the instrument resulting from the deprivation of the instrument. The
trier of fact shall determine the value of all other property whose
value is not readily ascertainable, and may, in making that
determination, consider all relevant evidence, including evidence of
the value of the property to its owner.
Sec. 4. The provisions of this act do not apply to any contract
for the sale of or reimbursement for a drug e ntered into before
January 1, 2026, but do apply to any renewal or extension of such a
contract.
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Sec. 5. 1. This section becomes effective upon passage and
approval.
2. Sections 1 to 4, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting any
regulations and performing any other preparatory administrative
tasks that are necessary to carry out the provisions of this act; and
(b) On January 1, 2026, for all other purposes.
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