Media advisory: House Speaker Joseline Peña-Melnyk to Highlight Savings Coming to Maryland Taxpayers and Consumers Through the Work of the MD Prescription Drug Affordability Board

House Speaker Joseline Peña-Melnyk, key legislators, advocates and faith leaders will hold a press conference to highlight the work of the Maryland Prescription Drug Affordability Board (PDAB) and detail how its work will lead to lower costs for drugs purchased in Maryland.  Governor Wes Moore has provided a video statement here about the PDAB progress in Maryland.

The press conference comes two days after the PDAB took action to set an upper payment limit on the costs paid by state and local government entities for Jardiance. The PDAB estimated that state and local governments in Maryland will save about $320,000 per year. Although they did not take action on it at this time, the PDAB is also poised to soon set an upper payment limit for the blockbuster diabetes drug Ozempic which the PDAB estimates will save state and local governments in Maryland about $5.8 million per year.

Once they have set upper payment limits for state and local government drug costs for two drugs, the PDAB will in a year’s time have the expanded authority to set upper payment limits on drugs purchased by all Marylanders.

A new analysis commissioned by Maryland Health Care for All details how the PDAB’s work would bring down costs for all Marylanders. The analysis finds upper payment limits set by the PDAB for everyone could:

• Save the Maryland health care system up to $165 million annually on the cost of the diabetes drug Ozempic.
• Save the Maryland health care system up to $16.4 million annually on the cost of Jardiance, which is used for patients facing diabetes, kidney disease and other health problems.

Such savings to consumers will grow substantially as the PDAB expands its work to set upper payment limits on more high-cost drugs.

Maryland Health Care for All is launching a major radio advertising campaign on Baltimore radio stations to highlight the work of the PDAB featuring David Conway, the President of Maryland AARP. You can hear the ad here.

 “Maryland has been a leader in this fight to bring down the cost of drugs, and now we are reaping the benefits,” Governor Wes Moore said. “I encourage governors and lawmakers across the country to explore similar ways to stop the upward spiral in drug costs because the strength of the state begins with the health and well-being of those living there.”

 “The genius behind Maryland’s first-in-the-nation Prescription Drug Affordability Board is that it saves money for both the patient and the State – savings that matter more now than ever,” Speaker Peña-Melnyk said. “In these challenging fiscal times, Maryland is showing a way for other states to replicate our success. As the law’s original sponsor, I’m excited to work with other lawmakers across the country, encouraging them to follow our lead.”

“While the Trump Administration ignores the problem of rising drug prices and premiums for Americans, Maryland’s Prescription Drug Affordability Board continues to prove itself as a model for how to combat corporate price-gouging – and reduce the cost of lifesaving medicines for states and local governments and taxpayers alike. At the federal level, I will continue fighting not only to undo the devastating cuts that Trump and Republicans in Congress have made to health care – but also to build a better future with affordable health care for all Americans,” said Senator Chris Van Hollen.

“Maryland is proud to have led the way in establishing a Prescription Drug Affordability Board to address the high cost of medications,” said Senate President Bill Ferguson. “I am pleased that we are taking decisive action to reduce costs for state and local governments, and I look forward to the Board’s next steps to deliver meaningful savings for all Marylanders. I am hopeful Maryland can be a model for other states seeking to reduce the high costs of prescription drugs

“We congratulate the Prescription Drug Affordability Board for its hard work to set upper payment limits on high cost drugs purchased by state and local governments, which will save taxpayers significant revenue,” said Vincent DeMarco, president of Maryland Health Care for All. “Looking ahead, this new analysis makes clear that the Board will be able to bring down the cost of expensive drugs for all Marylanders in the future. Tens of millions of dollars in savings are coming and will help Maryland families afford their prescriptions and live healthier lives.”

The new analysis of the expected cost reductions for Jardiance and Ozempic was developed by Steve Ports, an expert in Maryland health care financing and a longtime Health Services Cost Review Commission staffer and General Assembly fiscal analyst. The analysis can be found here.