On February 6, Associate Policy Director Karrington Anderson testified before the Health and Government Operations Committee in support of HB 424 – Prescription Drug Affordability Board – Authority for Upper Payment Limits (Lowering Prescription Drug Costs for All Marylanders Now Act).
This bill enhances the authority of the Prescription Drug Affordability Board to establish a process for setting upper payment limits for prescription drug purchases and payor reimbursements in the state.
This legislation strengthens efforts to address the financial burden of skyrocketing drug prices on local governments and their employees.
Counties, as public employers, bear the increasing costs of prescription drugs through the health insurance coverage they provide to employees and their dependents. While counties subsidize these health plans, employees also share the expense through premiums, co-payments, and deductibles. Unchecked prescription drug price increases make it more difficult for counties to offer comprehensive and affordable health benefits while straining local budgets.
HB 424 offers a targeted approach to controlling excessive prescription drug costs by allowing the Prescription Drug Affordability Board to establish upper payment limits. This ensures that payors such as local governments are not subject to unpredictable and unaffordable price spikes.
HB 424’s cross-filed, SB 357, was also heard on February 6 in the Senate Finance Committee. Kevin Kinnally testified in support of this bill.
SB 357 was heard in the opposite chamber, the Health and Government Operations Committee, on March 27. MACo submitted written testimony in support of this bill.
