Even after Congress and the Biden administration passed the Inflation Reduction Act (IRA) last summer, some states are looking to further strengthen their drug pricing laws.
This week, Minnesota's legislature endorsed a proposal to create a statewide Prescription Drug Affordability Board. The board would have the power to set upper payment limits on certain high-cost pharmaceuticals, local newspaper Red Lake Nation News reports.
The bill also includes provisions to stop price gouging on generics. It's now on its way to Minnesota Governor Tim Walz for a signature.
But that's where the pharmaceutical industry's lobby group is hoping to stop the proposal. Wednesday, the Pharmaceutical Research and Manufacturers of America (PhRMA) called on the governor to not sign the bill.
The board would “do little to help patients and likely harm future access to medicines,” PhRMA's senior vice president of state advocacy, Scott LaGanga, said in a statement.
“This is a bad deal for Minnesotans, and we urge Gov. Walz not to sign it into law,” LaGanga continued. “The bill threatens the patient-doctor relationship and injects bureaucrats into the evaluation of whether certain treatments are worth paying for.”
If Walz signs the bill, Minnesota’s commerce department would establish the board by Jan. 1, 2024.
PhRMA has had its hands full on the drug pricing front lately. Last summer, the industry suffered a loss when the federal government enacted the IRA, which will allow Medicare to negotiate certain drug prices starting in 2026.
The IRA also includes measures aimed at limiting price hikes and capping out of pocket costs for patients.
After the IRA loss, three members of PhRMA have left the group. The companies did not directly tie in their decisions with the industry's IRA setback.
At the federal level, lawmakers are still focused on the drug pricing issue even after the IRA's passage.
Other ongoing drug pricing initiatives include proposals by Sen. Bernie Sanders, I-Vermont, to boost generic access and pharmacy benefit manager oversight. Senate Democrats are also looking at legislation to allow Centers for Medicare & Medicaid Services to negotiate drug prices sooner than specified by the IRA.