Prominent lawmakers in Maryland are pushing for new legislation that will set upper payment limits on some prescription drugs for residents with private insurance.
The change will likely be introduced in the Maryland General Assembly’s 2024 session, set to start early next year. U.S. Senator Chris Van Hollen, House of Delegates Chairwoman Joseline Pena-Melnyk and advocacy groups Healthcare for All! and AARP all threw their support behind the potential legislation during a virtual townhall on Monday.
“Here in Maryland, over half of all Marylanders are concerned with the cost of prescription drugs and one-third of Marylanders report not taking their medication as prescribed due to the cost,” said Hank Greenberg, the state director of the Maryland AARP, during the event, which was hosted by Healthcare for All.
The potential bill would expand the authority of Maryland’s Prescription Drug Affordability (PDAB).
That organization was created by the state legislature in 2019 and is currently working on setting payment limits on drugs covered by state and local government insurance plans.
“The board made it very clear that the priority is the affordability for the patient,” Andrew York, executive director of PDAB said. “Anything that we do needs to help the patients in their pocketbooks and that's a very clear directive from the board.”
The PDAP is formulating a plan on how it will enforce the upper payment limits on drugs.
York says mechanisms to do that may include implementation of existing rebates or negotiating with drug companies.
The board will then need to have that plan approved by the General Assembly’s Legislative Policy Committee before it can go forward.
If the new legislation makes it into law, the board would be able to place those limits on privately insured plans as well.
“It's time to give the PDAB the authority to use its upper payment limit authority to make high-cost drugs more affordable for all Marylanders,” said Vincent DeMarco, president of the Maryland Healthcare for All! Coalition. “We look forward to working with the Maryland General Assembly to expand the PDAB's authority in 2024. Drugs don't work if people can't afford them."
