H 51 PRESCRIPTION DRUG AFFORDABILITY BOARD ACT

Rep Pamelya Herndon

Actions: HPREF [2] HHHC/HAFC-HHHC [6] DNP-CS/DP-HAFC

Scheduled: Not Scheduled

 House Bill 51 (HB 51) enacts the Prescription Drug Affordability Board Act; establishes the Board; creates a fund; and makes an appropriation. 

 The bill establishes the intent, role and composition of the Prescription Drug Affordability Board (Board), provides related definitions, and creates the Board. Terms and compensation for board members are set, and processes for removal, replacement, and operation are detailed.

Powers and duties of the Board are to include:

•	Recommending regulatory approaches
•	Promulgating rules
•	Contracting for services to the Board
•	Providing education and outreach; and
•	Conducting public hearings

The Board is to receive and review all data relevant to prescription drug costs.

The funding design for the Board is established, based on annual assessments, and the “prescription drug affordability board fund” is created in the State Treasury.

The bill requires annual studies and reports to the legislative finance committee and the legislative health and human services committee.

Finally, $750,000 is appropriated from the General Fund to the Board in Fiscal Year 2024 (FY 2024) to establish the Board and to cover operational costs. Any unexpended or unencumbered balance remaining at the end of FY 2024 will revert to the General Fund. After assessments are collected the Board will reimburse the General Fund for the full amount.

The effective date of the provisions of this act is July 1, 2023. 

 If the bill does not pass, there will continue to be no specific body dedicated to, and funded for, the oversight and strategic development of prescription drug affordability. 

 Committee Substitute February 13, 2023 in HHHC
HHHCcs / HB 51: The House Health and Human Services Committee Substitute for HB 51 modifies the following:
•	“The Prescription Drug Affordability Board” is renamed as the Prescription Drug Affordability Act, and related references are changed from “Board” to “Act”;
•	the Board is included in the bill, to be administratively attached to the Office of the Superintendent of Insurance (Office);
•	on page 5, wording is modified in section 3-A, expanding the duties of the Board, requiring them to “examine, develop and implement programs and strategies to lower the cost of prescription drugs”;
•	a responsibility to “recommend regulatory approaches to the Superintendent and the legislature” is added;
•	the responsibility to enter into contracts is removed;
•	the Board is to examine the feasibility of working with a wholesaler for collective purchasing (modified from “contracting with a pharmacy benefits manager”);
•	the Board is to study the possibility of having New Mexico join an existing regional purchasing consortium; and
•	the Board is required to consult and collaborate with stakeholders.
On page 6 and following, Section 6 is modified to replace the “Pharmacy Benefits Manager Act with the “Pharmacy Act”, and this terminology is updated throughout the bill. “Repackers” and “third-party logistics managers” are added to the list of those who will be annually assessed fees that will fund the Board. On page 8, Section 9 is modified to add a clarification of a required annual study by the Board, and details to be included in the study are added, i.e., a “study of state and national market trends and cost savings initiatives”; “a record of stakeholder collaboration and public outreach efforts”; and a “summary of business conducted”.
 

 Senate Bill 51, regarding cost-sharing contributions for prescriptions