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STAT+: Maryland state affordability board sets its first price cap for a medicine
Seeking to cap the cost of medicines, the Maryland Prescription Drug Affordability Board set an upper payment limit for a widely prescribed diabetes treatment, marking only the second time a state panel has taken such a step.
The board, which is designed to function like a state utility commission, will now oversee a process to lower the cost of the type 2 diabetes medicine Jardiance for the state and local governments by January 2027. At that time, the price will be capped at $204, or $6.80 a pill, for a 30-day supply. The move is estimated to save $320,000 a year.
The expected cost was benchmarked against the maximum fair price paid by Medicare, although the 2027 pricing was adjusted for inflation, according to Andrew York the executive director of the Maryland board.
Seeking to cap the cost of medicines, the Maryland Prescription Drug Affordability Board set an upper payment limit for a widely prescribed diabetes treatment, marking only the second time a state panel has taken such a step.
The board, which is designed to function like a state utility commission, will now oversee a process to lower the cost of the type 2 diabetes medicine Jardiance for the state and local governments by January 2027. At that time, the price will be capped at $204, or $6.80 a pill, for a 30-day supply. The move is estimated to save $320,000 a year.
The expected cost was benchmarked against the maximum fair price paid by Medicare, although the 2027 pricing was adjusted for inflation, according to Andrew York the executive director of the Maryland board.