Sen. Claxton introduces bills to lower prescription medication costs, expand access for rural communities

AUGUSTA – On Tuesday, Sen. Ned Claxton, D-Auburn, introduced two new bills that would lower prescription medication costs for Mainers and expand access to care for rural communities. The bills, LD 1636, “An Act to Reduce Prescription Drug Costs by Using International Pricing,” and LD 1938, “An Act To Prohibit Discriminatory Practices Related to the 340B Drug Pricing Program,” were both the subject of public hearings before the Legislature’s Committee on Health Coverage, Insurance and Financial Services.

“As a family physician, I always set out to ensure that everyone who walked through the doors of my practice got the care and medication they needed,” said Sen. Claxton. “Despite my best efforts, I often saw the high cost of a prescription get in the way of good treatment. This should never be the case – but it too often is. Nearly all of us know someone who has struggled to pay for a drug, gone into debt or had to sacrifice another part of their life just to fill a prescription. As Maine legislators, we need to continue doing all we can to ensure folks all over the state can get the medications they need. These two new bills will help us get there.”

LD 1636 would require the Maine Superintendent of Insurance to determine the 250 most costly prescription drugs and to establish a “referenced rate” for each drug, based on prices in the Canadian provinces of Ontario, Quebec, British Columbia and Alberta. Health plans would then be prohibited from purchasing these drugs at a higher cost than the referenced rate, and be required to pass those savings along to consumers.

LD 1938 would prohibit certain discriminatory practices related to the federal 340B program. Established by Congress in 1992, the 340B program helps expand access to prescription drugs to vulnerable populations and rural communities by allowing “covered entities,” such as hospitals and clinics that serve low-income areas, to purchase drugs from manufacturers at a discounted cost. Those savings are then used to help patients receive care they need that they wouldn’t be able to afford otherwise. In recent years, however, pharmaceutical companies and third-parties like pharmacy benefits managers have looked to benefit themselves financially by discriminating against pharmacies that participate in the program and using the benefit of the program for themselves. The bill would prohibit many of these common practices, which have negatively impacted health care providers and patients alike.

Both bills will receive further action in committee.

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