Summary Box: Drug price gouging

AP News
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Posted: Dec 06, 2011 11:29 AM
Summary Box: Drug price gouging

NEW CRIME: Proposed legislation to be introduced next week would make price gouging on prescription drugs that are in short supply a federal crime.

AND PUNISHMENT: Sen. Charles Schumer's bill would carry a penalty of up to $500 million for each case of price gouging.

THE BACKGROUND: Shortages of life-saving generic injected drugs crucial to hospital operations have become a crisis, disrupting patient care and even resulting in some deaths. Some secondary drug suppliers are accused of exacerbating the problem by snapping up drugs in short supply and charging huge markups to hospitals.