Bill > S875

This bill establishes a comprehensive framework to promote transparency and affordability in prescription drug pricing in Massachusetts. The legislation creates a Prescription Drug Affordability Board within the state's health commission, tasked with identifying and reviewing drugs that pose potential affordability challenges. The board will have the authority to conduct affordability reviews of prescription drugs, considering factors such as wholesale acquisition costs, patient out-of-pocket expenses, market competition, and potential impacts on underserved communities. If a drug is determined to have an affordability challenge, the board can set an upper payment limit for that drug, which would apply to all purchases and reimbursements in the state. The bill also requires pharmaceutical manufacturers and pharmacy benefit managers to provide detailed reporting on drug pricing, including information about price increases, research and development costs, marketing expenses, and other financial details. Additionally, the legislation prohibits using utilization management criteria (like prior authorization or step therapy) as a negotiation tactic for drug rebates, ensuring that such negotiations focus on cost-effectiveness and clinical efficacy. The bill aims to increase transparency in drug pricing, protect consumers from excessive drug costs, and provide state regulators with more tools to manage pharmaceutical expenses.