Prescription drug prices continue to rise, and local governments are footing more of the bill. Maryland passed a bill that gives the State’s affordability board authority to curb costs and protect public budgets.
As prescription drug prices continue to strain family budgets and public health programs, Maryland is taking bold legislative action. In the 2025 legislative session, the Maryland General Assembly passed legislation to increase drug pricing transparency and accountability. SB 357/ HB 424 enhances the authority of the State’s Prescription Drug Affordability Board (PDAB) by allowing it to establish a process for setting upper payment limits for certain high-cost prescription drugs. This move builds on the State’s ongoing efforts to rein in drug prices and make essential medications more affordable.
MACo testified in support of SB 357, citing the growing financial burden of prescription drug costs on local governments and their employees.
From MACo’s testimony:
“Counties, as public employers, bear the increasing costs of prescription drugs through the health insurance coverage they provide to employees and their dependents. Unchecked prescription drug price increases make it more difficult for counties to offer comprehensive and affordable health benefits while straining local budgets.”
By allowing PDAB to set upper payment limits, the bill aims to protect counties and other payors from unpredictable price spikes. It also supports better long-term budgeting for healthcare expenses while ensuring county employees continue to have access to necessary medications. The bill is expected to be signed into law by Governor Moore in May, marking a milestone in Maryland’s approach to prescription drug affordability. Once enacted, PDAB is set to begin establishing upper payment limits this summer, specifically for what state and local governments pay for some of the most expensive medications on the market.
The Prescription Drug Affordability Board is hosting a stakeholder council meeting on April 28. The agenda includes a presentation on “Drug Pricing and Supply Chain Overview.” This presentation will offer valuable context on how drug prices are set and where affordability interventions can make the most impact. Counties and other stakeholders are encouraged to attend and stay informed as the Board ramps up its work.
Register for the Prescription Drug Affordability Stakeholder Council Meeting on April 28, 2025, at 2:00 PM here.
Click here to view the passed enrolled version of SB 357 / HB 424.
