Reny, Perry introduce legislation to rein in prescription drug prices

AUGUSTA – On Monday, Senator Cameron Reny, D-Bristol, and Rep. Anne Perry, D-Calais, introduced legislation to lower the price of prescription medication at a public hearing before the Legislature’s Health Coverage, Insurance and Financial Services Committee. 

LD 1829, “An Act to Reduce Prescription Drug Costs by Requiring Reference-based Pricing” and LD 1816, “An Act Requiring Reference-based Pricing to Reduce Prescription Drug Costs” would prevent state-regulated health insurers from paying more for select prescription drugs than the rate negotiated by Medicare for the same. The proposal requires that all savings be passed along to the consumer.

“The health of Maine people is not a commodity. Mainers deserve access to affordable, lifesaving medication instead of being forced to make impossible decisions between adhering to their prescribed regimen, or buying groceries or paying the light bill,” said Sen. Reny. “Medicare is the country’s largest buyer of prescription drugs. Leveraging this buying power is expected to significantly lower prices for Medicare recipients. By passing this legislation, Maine lawmakers can extend these lower prices and deliver much-needed savings to working families who desperately need them.”

“The skyrocketing costs of prescription drugs have impacted the ability of Mainers across the state to lead healthy lives,” said Rep. Perry. “This legislation would leverage the work that Medicare is doing to negotiate down the price of drugs, further reducing costs for Mainers, particularly for many of our aging neighbors who are on fixed incomes.” 

The Inflation Reduction Act of 2022 passed by Congress and signed into law by President Joe Biden granted Medicare the authority to negotiate with pharmaceutical companies on the prices of certain medications. The Congressional Budget Office estimates “price negotiation will lower average drug prices in Medicare and will reduce the budget deficit by $25 billion in 2031.” The legislation would establish the maximum price negotiated by Medicare as the maximum price that state-regulated insurers can pay for certain medications.

The proposal also offers accessible payment limits to employers that provide health care coverage for employees through “self-insured” or “self-funded” plans. This would provide much-needed relief for employers and covered workers.

“Mainers cannot keep up with the increasing prices of prescription drug costs. The good news is that due to the Federal Inflation Reduction Act (IRA) of 2022, some relief is coming to some Mainers,” said Bridget Quinn, AARP Maine. “LD 1829 will allow more Mainers to benefit from the IRA provisions by referencing prescription prices from the IRA’s Maximum Fair Price.”

The price of prescription medication is putting the health of Maine people at risk. Recent data from Maine Consumers for Affordable Health Care found that more than 52 percent of Mainers worry about not being able to take their medication. One in four Mainers do not take their medication as prescribed due to cost. Instead, those surveyed have had to cut pills in half, skip doses, delay refilling a prescription or forgo the refill entirely. 

The proposed legislation is a recommendation of Maine’s Prescription Drug Affordability Board, which is charged with determining annual spending targets for prescription drugs purchased by Maine public payers and making recommendations to achieve those targets.

Both proposals will undergo additional work sessions in committee.