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July 7, 2023 HB 23-1225
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0867
Rep. deGruy Kennedy;
Dickson
Sen. Jaquez Lewis;
Buckner
Date:
Bill Status:
Fiscal Analyst:
July 7, 2023
Signed into Law
Kristine McLaughlin | 303-866-4776
kristine.mclaughlin@coleg.gov
Bill Topic: EXTEND & MODIFY RX DRUG AFFORDABILITY BOARD
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill makes several changes to the Drug Affordability Review Board’s procedures.
The bill impacts state workload on an ongoing basis.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the enacted bill.
Summary of Legislation
The bill makes several changes to the Colorado Prescription Drug Affordability Review Board (the
board) in the Division of Insurance in the Department of Regulatory Agencies (DORA). These changes
include:
limiting conflict of interest recusal requirements to board members only (excluding staff and
contractors, disclosure requirements apply);
changing various cost thresholds for different types of drugs that prompt the board to conduct a
review;
requiring the board to produce a report summarizing drug affordability data that it uses;
changing the cap on the number of prescription drugs for which an upper payment limits may be
established by the board annually;
making minor changes to the board’s appeal process;
extending the repeal date and associated sunset review of the board from September 1, 2026, to
September 1, 2031; and
expanding when an individual may request a review to include cases when the drug is no longer
available in the state.
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July 7, 2023 HB 23-1225
Background
The Colorado Prescription Drug Affordability Review Board, established under Senate Bill 21-175, is
a Type 1 board within the Division of Insurance in DORA with the authority to review prescription
drug costs, evaluate their impact on Coloradans, and set an upper payment limit for prescription
drugs that are deemed unaffordable.
State Expenditures
The bill impacts workload and costs in DORA in several ways, as outlined below.
Board workload. The bill may increase workload if the board chooses to review or set upper payment
limits for more prescription drugs after removal of the 12-drug cap. The division and board will also
have additional workload to publish a report of the data that it considers when reviewing drugs.
Workload may minimally decrease in the division by streamlining aspects of the board’s work. No
change in appropriations is required for the DOI or the board.
Legal services. The bill may minimally increase legal service costs for the board and DOI, provided
by the Department of Law, for general counsel and other support under the bill. Exact costs may vary
and depend on the number of drug reviews conducted by the board. These costs will be addressed
through the annual budget process, if necessary.
Effective Date
The bill was signed into law by the Governor on May 10, 2023, and takes effect on August 7, 2023,
assuming no referendum petition is filed, except for Section 4 which takes effect January 1, 2025.
State and Local Government Contacts
Health Care Policy and Financing Public Health and Environment Regulatory Agencies
District Attorneys Judicial Law
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.