While prescription drug pricing is front and center in Congress, partisan gridlock, impeachment, and the election all but assures Congress will not pass comprehensive legislation to address it—which means state legislatures will continue to be extremely active on drug costs.
Last year, over 33 states enacted 55 laws related to prescription drug pricing, particularly laws aimed directly at manufacturers and/or at pharmacy benefits managers—and we anticipate 2020 will be just as active, if not more so.
Expect more drug pricing review commissions. We’re already seeing a proliferation of these commissions, which set drug prices and thereby treat drug manufacturers like public utilities. In 2019, Maryland was the first state to pass such a law, followed shortly thereafter by Maine. In 2020, we anticipate other states will follow.
And drug price transparency legislation. We know state policymakers will continue to push to enact price transparency legislation. Already, 9 states have some form of transparency laws on the books.
Meanwhile, drug importation is gaining momentum. The Trump administration unveiled a plan last year to allow states to import drugs as a way to lower prescription drug costs. Florida, Colorado, and Vermont have already enacted laws creating importation schemes, but they still require approval from the U.S. Department of Health & Human Services. And other states, particularly in the Pacific Northwest and New England, have bills under consideration in 2020.
There’s more! ICER-like value assessments. They’re beginning to play a significant role in how state Medicaid programs and other state-run drug programs pay for drugs, especially as new gene and cell-based therapies come on to the market. We anticipate ICER and other value assessment entities will play an ever-increasing role as states look to models already in place in New York and Massachusetts.
