Statement: Prescription Drug Affordability Board votes to set Upper Payment limit on Ozempic purchased by state and local government entities

Action will save government agencies $5.8 M annually and sets stage for far more sweeping reductions for all Marylanders in 2028

May 18, 2026

The Maryland Health Care for All! Coalition (HCFA) congratulates the Maryland Prescription Drug Affordability Board (PDAB) for acting today to set an upper payment limit for the purchase of the weight-loss and diabetes drug Ozempic by state and local government entities. The PDAB’s action is on track to take effect January 1, 2027. 

Setting the upper payment limit for Ozempic will save state and local governments an estimated $5.8 million a year for their purchases of the drug, including for government employees. The PDAB earlier this year set an upper payment limit on the costs paid by state and local government entities for the drug Jardiance. The PDAB estimated that state and local governments in Maryland will save about $320,000 per year on the purchase of Jardiance moving forward.

The PDAB is expected to begin acting in 2028 to set upper payment limits on high-cost drugs purchased by all Marylanders in the commercial insurance market.

“This new action by the Prescription Drug Affordability Board is great news for state and local governments and will free up millions of dollars that can be used to meet other important community needs,” said Vincent DeMarco, president of the Maryland Health Care for All! Coalition. “We are excited that the Board will be moving forward soon to bring down the costs of expensive drugs purchased by all Marylanders. Their work will ensure more of our residents can afford the drugs they need to stay healthy. Drugs don’t work if people can’t afford them.” 

A report commissioned by HCFA estimates that setting an upper payment limit on Ozempic for all Marylanders could save $164 million annually. Savings estimate reports can be viewed at healthcareforall.com/UPLestimates 

The PDAB’s new action to limit costs for Ozempic paid by local and state government entities comes as some public agencies are struggling to afford the drug for their workers. Howard County Public School System, for example, recently discontinued coverage of Ozempic for weight-loss use for its employees due to soaring costs.

The PDAB was established by the state in 2019 to develop ways to bring down the costs of expensive medications. At the time it was the first such board in the country, and several states have followed Maryland’s lead by creating similar boards.