Wisconsin Senate Bill SB718

Wisconsin 2023-2024 Regular Session

• Introduced: 11/21/23
• Refer: 11/21/23
• Failed: 4/15/24

Caption

Creating a Prescription Drug Affordability Review Board, funding for an office of prescription drug affordability, crediting certain amounts to the general program operations account of the office of the commissioner of insurance, granting rulemaking authority, and making an appropriation. (FE)

Impact

The law will introduce a structured process for reviewing drug costs, requiring the board to meet at least four times a year to discuss and assess pricing information. If the board finds that the costs of certain drugs are prohibitively high, it has the authority to establish upper payment limits that could regulate how much these drugs can be sold for within the state. This could lead to substantial changes in how pharmaceutical products are priced, potentially benefiting consumers who struggle with high out-of-pocket costs for essential medications.

Summary

Senate Bill 718 establishes a Prescription Drug Affordability Review Board in Wisconsin, aimed at mitigating the high costs associated with prescription medications. This board will be composed of various stakeholders, including representatives from the pharmaceutical, health insurance, and healthcare industries, as well as public members. The board will be responsible for conducting affordability reviews on selected prescription drugs, particularly those with high acquisition costs or significant price increases, to determine whether they pose affordability challenges for the healthcare system in Wisconsin.

Contention

Notable points of contention surrounding SB 718 may include concerns regarding the potential impact on pharmaceutical innovation and the profit margins of drug manufacturers. Some stakeholders may argue that imposing pricing limits could disincentivize research and development efforts within the industry. Additionally, the effectiveness of the board in balancing the interests of public health and corporate profitability will likely be scrutinized as implementation progresses. Critics may express apprehension that the heightened regulation of drug prices could lead to supply shortages or reduced availability of certain drugs.