Maryland investigates drug pricing differences with Germany to address affordability crisis

Maryland's Prescription Drug Affordability Board is poised to take significant action to combat soaring drug prices, which have become a pressing issue for many residents. During a recent HGO Committee session, it was revealed that nearly one in three Marylanders have either skipped doses or left prescriptions unfilled due to high costs. This alarming trend underscores the urgent need for reform in how prescription drugs are priced in the state.

The committee discussed the potential for the board to establish statewide upper payment limits for prescription drugs, a move that could help alleviate the financial burden on consumers. Current data shows that the wholesale acquisition costs for certain medications in the U.S. are drastically higher than in countries like Germany. For instance, the cost of SKYRIZI in the U.S. is over $21,000 per dose, while in Germany, it is approximately $3,700. Such disparities highlight the inefficiencies in the American drug pricing system.

The board is currently focusing on two specific drugs, Jardiance and Farcega, which are essential for treating diabetes and heart disease. The costs for these medications have nearly doubled for the state employee health plan over the past four years, rising from $14.5 million to $29.3 million. This increase places additional strain on state budgets and taxpayers, who have already contributed significantly to the development of these drugs through research funding.

The proposed upper payment limits aim to create a more equitable pricing structure, ensuring that Marylanders are not paying excessively for medications that are critical to their health. The board is equipped to implement this expanded authority and is committed to a comprehensive approach to drug pricing.

While some stakeholders express concerns that these measures could stifle innovation or lead to drug shortages, the board argues that the current pricing model is unsustainable and does not serve the public interest. The discussion also touched on the role of pharmacy benefit managers and the need for greater transparency in drug pricing.

As Maryland moves forward with these initiatives, the implications for residents could be profound, potentially leading to lower out-of-pocket costs for essential medications and a more sustainable healthcare system. The board's efforts represent a critical step toward addressing the growing crisis of prescription drug affordability in the state.