New Mexico House Bill HB51

New Mexico 2023 Regular Session

• Introduced: 1/17/23
• Report Pass: 2/14/23

Caption

Prescription Drug Affordability Board Act

Impact

The legislation mandates the creation of a Prescription Drug Affordability Board Fund, financed by annual assessments on licensed manufacturers, wholesalers, and pharmacy benefits managers. The fund will support the operational costs of the board while ensuring that strategies for cost reduction are implemented effectively. By enforcing requirements for annual reports that analyze price trends and recommend legislative solutions, the board aims to provide comprehensive insights into the drug market both locally and nationally.

Summary

House Bill 51, known as the Prescription Drug Affordability Board Act, is designed to address the rising costs of prescription drugs by establishing a dedicated board tasked with developing strategies to lower these costs for consumers, healthcare providers, and businesses. The act creates the Prescription Drug Affordability Board which will consist of members with expertise in healthcare economics and the pharmaceutical market. The board's primary duty will be to recommend ways to reduce drug prices and assess the impacts of current drug pricing practices within the state.

Contention

While proponents of the bill view it as a necessary step towards controlling drug prices and enhancing affordability for consumers, there may be anticipated opposition from pharmaceutical manufacturers who could view this as regulatory overreach. Additionally, there are concerns regarding how the board's recommendations could interact with existing market dynamics and whether the imposed assessments could impact the operation of companies engaged in drug production and distribution within the state. The effectiveness of such a board will likely hinge on its ability to balance cost reduction with the need for manufacturers to maintain viable pricing structures.