Sen. Breen testifies in support of prescription drug reform

AUGUSTA — Sen. Cathy Breen, D-Falmouth, testified before the Legislature’s Committee on Health Coverage, Insurance and Financial Services in support of legislation to lower the cost of prescription drugs in Maine. Wednesday was the second day of public hearings on the Senate Democrats’ prescription drug reform package.

The proposal includes a suite of five drug reform bills – sponsored by Senate President Troy Jackson, D-Allagash, Sen. Heather Sanborn, D-Portland, and Assistant Senate Majority Leader Eloise Vitelli, D-Arrowsic – focused on affordability, accessibility, accountability and transparency.

“I regularly hear from constituents who are shocked at the prices of prescription drugs, and, unfortunately, some of these folks have to make very difficult choices because of the impact on their budgets,” said Sen. Breen. “I am very proud that we are making progress on regulating this industry in Maine.”

Two bills from President Jackson propose importing safe and affordable prescription drugs from Canada, which are often 30 percent cheaper than the same drug in the U.S.  LD 1272, “An Act To Increase Access to Low-cost Prescription Drugs,” would set up a wholesale state importation program, similar to legislation that passed in Vermont last year.  LD 1387, “An Act To Increase Access to Safe and Affordable Prescription Drugs,” would create an individual importation program.

President Jackson also has a bill to create a Prescription Drug Affordability Board modeled after legislation that passed through the State Legislature in Maryland earlier this month.

“The Maine Prescription Drug Affordability Board will review high cost or fast appreciating drugs to determine if the cost is justified and set fair payment rates for them if not. This is commonsense approach to reigning in the costs of lifesaving and life-sustaining medications,” said Sen. Breen. “We can’t pretend we’ll make prescriptions affordable overnight, but as policymakers, we must take steps to start reducing drug prices now. These bills offer a comprehensive approach to start addressing the root causes of increasing drug prices and to limit the cost Mainers can be asked to pay for their medications.”

The package also includes legislation to regulate pharmacy benefit managers, also known as the “middlemen” between the drug manufacturing companies and pharmacies. LD 1504, “An Act To Protect Consumers from Unfair Practices Related to Pharmacy Benefits Management,” sponsored by Sen. Heather Sanborn would require PBMs to operate in the best interest of providers and pass on all manufacturer rebates to reduce the cost of drugs. It would also prohibit the practice called “spread-pricing” in which PBMs pay pharmacies less for a drug than the cost they charge insurance companies.

The final bill – LD 1162, “An Act To Further Expand Drug Price Transparency” – from Sen. Vitelli would require more transparency for the entirety of the prescription drug marketplace and require disclosure of information impacting drug pricing from manufacturers, pharmacy benefit managers, wholesalers and insurance companies.

In the U.S., one in four Americans struggles to pay for their prescription medication while one in ten Americans does not take their medicine as prescribed to stay afloat. According to the National Academy for State Health Policy, about 200 bills have been filed in 42 state legislatures to address the cost of prescription drugs. Eighty-eight bills have to do with pharmacy benefit managers, 25 are related to wholesale importation and 13 are related to drug affordability review or rate setting.

All five bills face work sessions in the Committee on Health Coverage, Insurance and Financial Services before moving to the floor of the Senate and House for additional votes. The work session is tentatively scheduled for Wednesday, April 24.

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