Massachusetts Senate Bill S778

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

To bring down the cost of prescription drugs

Impact

If instituted, the state-directed program would target the reduction of prescription drug costs, particularly for public and private payers and consumers across Massachusetts. The analysis required by the bill will cover several aspects, such as identifying cost-driving factors for older or off-patent drugs, understanding the market dynamics of generic drugs, and evaluating the potential benefits of state involvement in drug manufacturing. The findings are expected to inform potential legislative actions that could direct or facilitate this manufacturing initiative.

Summary

Senate Bill S778, dubbed 'An Act to bring down the cost of prescription drugs,' aims to explore the feasibility of establishing a state-directed program for the manufacture of generic or biosimilar prescription drugs in Massachusetts. The impetus for the bill arises from the increasing financial burden of prescription drugs on both consumers and the healthcare system. It seeks to create a study by the health policy commission to investigate whether direct state involvement in drug manufacturing could enhance competition, reduce prices, and alleviate shortages within the pharmaceutical market.

Contention

The bill may face debates surrounding the effectiveness of government-run programs compared to private drug manufacturing. Critics may argue that direct state involvement in drug manufacture could encroach upon market principles, potentially leading to inefficiencies. Proponents, however, may counter that prescribed state regulation could rectify market failures and ensure equitable access to essential medications. The outcomes of the study, which is to be submitted within a year of the adoption of the act, will serve as a pivotal element in deciding the state's next steps involving drug pricing policies.