MARYLAND – New legislation would help set caps on the upper limit of drug costs in Maryland. Prescription drug prices have soared, according to Maryland lawmakers and healthcare advocates.

Legislation Would Expand Drug Affordability Board’s Power

Senate Bill 357 , cross-filed with House Bill 424 , would require the Prescription Drug Affordability Board (the Board) to establish a process for setting upper payment limits for all purchases and payor reimbursements of prescription drug products in the state that the Board determines have led or will lead to affordability challenges. The Board was established through legislation in 2019.

SB 357 was co-sponsored by Senators Dawn Gile (D – Md. District 33) and Brian Feldman (D – Md. District 15). The House version of the bill was sponsored by Delegates Bonnie Cullison (D – Md. District 19) and Jennifer White Holland (D – Md. District 10).

Support for Capping Soaring Costs

On Tuesday, members of Maryland Health Care for All rallied in Annapolis in support of the bills.

“Drugs don’t work if people can’t afford them … [The Board] needs more legislative authority to be able to make those high-cost drugs more affordable for everyone. And, we will all benefit because our insurance premiums are higher because the cost of drugs is so high for insurance companies,” said the organization’s president, Vincent DeMarco.

Only Part of the Problem

But local drug store officials said the legislation would only be part of the fix.

“I think the biggest effect we’re going to have is if we can see some changes to the pharmacy benefit manager, or PBM, landscape,” said Zack Sherr, vice president and director of operations at Apple Discount Drugs in Fruitland.

Sherr explained pharmacy benefit manager systems determine formularies or lists of prescription drugs covered by an insurance plan.

“They are the ones who [control] … how much those formularies are going to cost, how much you can get at a certain time, what’s approved and what’s not approved,” Sherr said.

And, the high cost of drugs is also pushing up the price of doing business, Sherr added.

“We’re a small, independent business, and we’re certainly not given any slack by wholesalers along the way. So, everyone feels the pressure all around … That’s why we have to be creative and find ways to offer new services and help the community,” Sherr said.

Looking Ahead

“There is a lot of information out there, and there is a lot of misinformation out there, and it can be overwhelming. So, I encourage people to reach out to their pharmacist because that’s our job—is to look after you and all your medication and health care needs,” Sherr said.

Looking ahead, DeMarco said Maryland Health Care for All is also calling for new healthcare subsidies for Marylanders aged 18 through 24.

“This has helped tens of thousands of young Marylanders to get their health care coverage, and it expires this year,” DeMarco said.

The House version of the bill will be heard on Feb. 6 in the House Health and Government Operations Committee.