Maryland’s Prescription Drug Affordability Initiative Vincent DeMarco, President Maryland Citizens’ Health Initiative
America’s problem with high cost prescription drugs: • Pharmaceutical corporations increased the price of 497 drugs in January of 2020 alone • On average, citizens of other wealthy countries spend 56% of what we do in the U.S.
Why do we pay more? • Rather than innovation, the single biggest driver of drug spending comes from price increases on existing medications • Not only is innovation supplemented by publicly-funded research, but drug corporations also spend many times more on advertising
Skyrocketing drug costs impact state and local budgets.
Maryland’s Prescription What can we do? Drug Affordability Board In the absence of federal action, • Serves as a watchdog for the Maryland public states can work • A five-member independent body with the authority to review the entire pharmaceutical to make supply chain prescription • Similar to other public commissions, such as drugs more those that set rates for utilities, insurance, and affordable. Maryland hospital rates
Maryland’s Timeline • Law creating the Board was enacted in 2019 and has been in effect since July 1 of last year • Permanent funding source secured in 2020; however was vetoed by the Governor. We are hopeful that this decision will be overridden when the General Assembly next convenes. • Beginning work to define “affordability” and looking at high cost medications that impact Marylanders • Will begin by making the drugs purchased by state and local governments more affordable • Must have a plan to expand its authority to present to the legislature by the end of 2023
The Prescription Drug Affordability Coalition is working to support these efforts to strengthen the Board. • The Coalition is comprised of over 400 business, government, labor, community, health, and faith groups, including: • Maryland Association of Counties (MACo) • Annapolis City Council • Baltimore City Council • Montgomery County Council • Prince George’s County Council • Rockville City Council • Charles County Branch of the NAACP • Veterans Democratic Club of Charles County • Western Charles County Community Association
How to join the Coalition: Visit www.healthcareforall.com/RxResolution Endorsement of the resolution means that the organization “supports creating a new Prescription Drug Affordability Board to determine how best to make prescription drugs more affordable for Marylanders, including by: examining the entire drug supply chain, including the role of drug manufacturers and Pharmacy Benefit Managers (PBMs), and establishing payment rates for expensive drugs that create significant affordability problems for Marylanders, building upon Maryland’s successful tradition of health care cost scrutiny.”
Questions? www.healthcareforall.com demarco@mdinitiative.org (410) 235-9000 Health Care for All! 2600 St. Paul Street Baltimore, MD 21218
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