Maryland’s Prescription Drug Affordability Board (PDAB) is moving forward with efforts to reduce prescription drug costs, with new savings expected for state and local governments.
As a Maryland Matters op-ed by Vinny DeMarco, President of the Maryland Health Care for All Coalition, explains, the Prescription Drug Affordability Board was created in 2019 as the first board of its kind and is tasked with identifying and addressing high prescription drug costs.
This year, the Board established upper payment limits for two high-cost medications, Ozempic and Jardiance, when purchased by state and local government entities. Those limits are expected to save state and local governments more than $6 million annually.
As previously covered by MACo, 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
The Board’s work could have a broader impact in the coming years. Beginning January 1, 2028, the Board will have authority to establish upper payment limits for certain high-cost prescription drugs covered by private insurance plans, projected to generate more than $160 million in annual savings.
The effort comes as prescription drug prices continue to rise nationally. According to the op-ed, the General Assembly is expected to consider legislation during the 2027 legislative session that would allow Maryland to establish upper payment limits for certain drugs based on prices negotiated through the federal Medicare program.
The Board’s ongoing work could shape future drug pricing strategies and health care spending across local governments.
Stay tuned to Conduit Street for more information.
