EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0306*
SENATE BILL 306
K1 5lr0818
By: Senator Beidle
Introduced and read first time: January 13, 2025
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 22, 2025
CHAPTER ______
AN ACT concerning 1
Workers’ Compensation – Prescription Drug and Pharmaceutical Services – 2
Reimbursements 3
FOR the purpose of requiring the State Workers’ Compensation Commission to regulate 4
fees and other charges for the reimbursement of prescription drugs and 5
pharmaceutical services under certain circumstances; limiting reimbursements to a 6
certain cost index or indexes; requiring the Maryland Prescription Drug Affordability 7
Board to conduct a certain study; and generally relating to reimbursement for 8
prescription drugs and pharmaceutical services under workers’ compensation law. 9
BY repealing and reenacting, with amendments, 10
Article – Labor and Employment 11
Section 9–663 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2024 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Labor and Employment 17
9–663. 18
(a) (1) The Commission shall adopt regulations setting standards for the 19
assessment of fines under § 9–664 of this Part IX of this subtitle. 20 2 SENATE BILL 306
(2) The Commission may adopt regulations about: 1
(i) the provision of medicine and medical, nursing, and hospital 2
services to a covered employee; 3
(ii) payment for the medicine and services; and 4
(iii) the exercise by the Chairman of the Commission of the powers 5
granted under § 9–662 of this subtitle. 6
(b) (1) The Commission may regulate fees and other charges for medical 7
services or treatment under this subtitle. 8
(2) (I) THE NOT LATER THAN SEPTEMBER 1, 2026, THE 9
COMMISSION SHALL REGU LATE FEES AND OTHER CHARGES FOR THE 10
REIMBURSEMENT OF PRE SCRIPTION DRUGS AND PHARMAC EUTICAL SERVICES 11
UNDER THIS SUBTITLE PROVIDED BY A PERSON WHO HOLDS A PHARMACY PERMIT 12
UNDER TITLE 12, SUBTITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE. 13
(II) REIMBURSEMENT UNDER S UBPARAGRAPH (I) OF THIS 14
PARAGRAPH SHALL BE L IMITED TO AN INDEX O R INDEXES BASE D ON ACQUISITION 15
COST, CALCULATED ON A PER UNIT BASIS, AS OF THE DATE OF DI SPENSING AND MAY 16
INCLUDE: 17
1. REASONABLE DISPENSIN G FEES; AND 18
2. ANY OTHER PERCENTAGE INCREASE OR DECREASE 19
DETERMINED BY THE COMMISSION. 20
(III) THIS PARAGRAPH DOES N OT PROHIBIT AN INSUR ANCE 21
CARRIER OR EMPLOYER FROM CONTRACTING WIT H A PHARMACY BENEFIT S 22
MANAGER, A NETWORK OF PHARMAC IES, OR DISPENSING PROVID ERS: 23
1. FOR REIMBURSEMENT RA TES DIFFERENT THAN 24
THOSE ESTABLISHED BY THE COMMISSION; OR 25
2. TO USE A PRICING IND EX OR INDEXES DIFFER ENT 26
THAN THOSE SELECTED BY THE COMMISSION. 27
(3) Each fee or other charge for medical service or treatment under this 28
subtitle is limited to the amount that prevails in the same community for similar treatment 29
of an injured individual with a standard of living that is comparable to that of the covered 30
employee. 31
SENATE BILL 306 3
[(3)] (4) At least once every 2 years, the Commission shall: 1
(i) review its guide of medical and surgical fees for completeness and 2
reasonableness; and 3
(ii) make appropriate revisions to the guide of medical and surgical 4
fees. 5
SECTION 2. AND BE IT FURTHER ENACTED, That: 6
(a) The Maryland Prescription Drug Affordability Board: 7
(1) shall conduct a study on prescription drug affordability challenges 8
related to workers’ compensation claims that includes: 9
(i) an overview of prescription drug prescribing and billing practices 10
and trends that are specialized to the workers’ compensation market; 11
(ii) research into specific prescribing, billing, and dispensing 12
practices, including: 13
1. prescribing high cost formulations and compounded 14
formulations of commonly available drugs; 15
2. billing and dispensing from entities that do not bill or 16
provide services in the health insurance market; and 17
3. billing practices using billing codes without standardized 18
pricing metrics; and 19
(iii) making recommendations, if applicable, for policies to address 20
identified affordability challenges; and 21
(2) may require, subject to applicable federal and State laws, entities that 22
pay, prescribe, bill, and dispense prescription drugs under workers’ compensation claims 23
to report information to the Board as necessary to complete the study. 24
(b) On or before March 1, 2026, the Prescription Drug Affordability Board shall 25
report its findings and any recommendations to the Senate Finance Committee and the 26
House Economic Matters Committee, in accordance with § 2–1257 of the State Government 27
Article. 28
SECTION 2. 3. AND BE IT FURTHE R ENACTED, That this Act shall take effect 29
October July 1, 2025. 30