Californians will have more information about the cost of prescription drugs under a measure Gov. Jerry Brown signed Monday.
The bill requires new disclosures from pharmaceutical companies, insurers, and the state about drug pricing.
"Californians have a right to know why their medical costs are out of control, especially when the pharmaceutical profits are soaring," Brown said.
The measure calls for companies to disclose to the state their most frequently prescribed and most costly drugs, and give notice before raising prices above a certain threshold. Insurers must explain what share of premium costs come from pharmaceuticals.
A similar measure failed last year, when an Assembly committee gutted it, amidst opposition from insurance companies. They argued disclosures will not include drug rebates and will give a misleading picture of drug costs.
Consumer advocates, health organizations, insurers, doctors and business groups supported the bill signed into law Monday.