Montana legislature enacts drug shortage policy to regulate pricing and prior authorization

March 01, 2025 | Introduced Senate Bills, 2025 House and Senate Bills, Montana Legislation Bills, Montana


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Montana legislature enacts drug shortage policy to regulate pricing and prior authorization
The Montana Legislature has introduced Senate Bill 317, a significant piece of legislation aimed at addressing prescription drug shortages and enhancing patient access to necessary medications. Introduced on March 1, 2025, the bill outlines specific provisions to ensure that patients can obtain prescription drugs, particularly those in the psychiatric category, that are deemed to be in shortage.

One of the key features of SB 317 is the requirement that any adverse determinations made during the prior authorization process by health insurance issuers must be conducted by a physician specializing in the relevant condition. This aims to ensure that decisions regarding patient care are made by qualified professionals who understand the complexities of the patient's needs. Additionally, the bill mandates that a list of prescription drugs in shortage be updated quarterly based on the official list published by the U.S. Food and Drug Administration (FDA).

Another notable provision prohibits drug manufacturers from engaging in predatory pricing or marketing practices related to drugs that are in shortage. This aspect of the bill seeks to protect consumers from potential exploitation during times of scarcity, ensuring that prices remain fair and accessible.

The introduction of SB 317 has sparked discussions among lawmakers and healthcare advocates. Supporters argue that the bill is a necessary step toward safeguarding patient access to essential medications, particularly in the face of ongoing drug shortages that have been exacerbated by various factors, including supply chain disruptions. Critics, however, have raised concerns about the potential administrative burden on healthcare providers and insurance companies, questioning whether the bill could lead to delays in patient care.

The implications of SB 317 are significant, as it addresses both economic and social issues related to healthcare access. By focusing on the psychiatric category, the bill highlights the urgent need for reliable access to mental health medications, a concern that has gained prominence in recent years.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and potential amendments. If passed, SB 317 could set a precedent for how prescription drug shortages are managed in Montana, potentially influencing similar legislative efforts in other states. The next steps will involve committee reviews and discussions, where the bill's provisions may be further refined to balance the needs of patients, healthcare providers, and insurance companies.

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