Maryland Senate approves legislation to expand Prescription Drug Affordability Board

The Maryland Senate passed legislation Thursday that would expand the authority of the state's Prescription Drug Affordability Board. 

The board was first created under a law that took effect in 2019. The law tasked the board with addressing rising prescription costs, especially for certain expensive medications. 

The law allowed the Prescription Drug Affordability Board to cap prices for some medications. By 2022, the board was able to set payment limits, but only with approval from a legislative panel. 

Under the law, the board is required to study the prescription drug supply chain, report back to the panel and offer policy options to lower prices. The panel is comprised of lawmakers from the state House and Senate. 

The board is also required to confer with a stakeholder council made up of 26 members, including representatives from drug companies, healthcare advocacy organizations, labor unions and researchers. 

SB357 could expand board's authority

Senate Bill 357, or the Lowering Prescription Drug Costs for All Marylanders Now Act, would add some members to the stakeholder council and require the Prescription Drug Affordability Board to confer with the Maryland Medical Assistance Program before setting payment limits. 

The stakeholder council provides input to the board as they make decisions about drug prices. The bill would add a representative from the rare disease community, a patient advocacy organization and a representative for oncologists to the council. 

Under the bill, the board would be allowed to reconsider payment limits for drugs that become part of a shortage. However, the board would not be able to establish a new payment limit for a drug that is part of a current shortage. 

The bill would also require the board to issue a report one year after setting a payment limit. The report would need to detail the impact of the limit on patient out-of-pocket costs, patient health insurance premiums, reimbursement rates for pharmacies and shortages or supply disruptions. 

Maryland House passes similar bill

The Maryland House passed a similar bill, HB424, which would expand the Drug Affordability Board's ability to set payment limits. 

This bill would also require the board to confer with the Maryland Medical Assistance Program before setting limits on drugs that apply to the program, though the details of the bill are somewhat different. 

Both bills have been passed to the opposite chamber for review. Both parties will need to agree on which version of the bill to pass. 

The bills have received praise from healthcare advocates. 

"When fully enacted, this measure will expand the Prescription Drug Affordability Board's authority so it can work to bring down costs for all Marylanders," said Vincent DeMarco, president of the Maryland Health Care for All Coalition.