About Assembly Bill 250:
The Affordable Medicine Act
The Affordable Medicine Act
About Assembly Bill 250: The Affordable Medicine Act
Drug companies are reporting record earnings, but they are still hiking prices that Americans pay for the drugs they need to survive. Reuters reported that five of the largest drug companies in the world would hike the prices of more than 350 drugs in 2023.
While 565,000 Nevada seniors (approximately 17% of the states’ population) enrolled in Medicare will soon enjoy the benefits of the negotiated prices of some of the most expensive prescription medicines, the rest of us will be left facing the full amount that the pharmaceutical companies can charge us – which can put the medicines we need for our health out of our reach.
That’s why the Nevada Legislature should adopt Assembly Bill 250, which will let EVERYONE in Nevada take advantage of the same negotiated drug discounts that Medicare recipients will soon receive.
Nevada should adopt a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare for everyone. It’s time for Nevada to take action to address the high cost of prescription drugs and ensure that all residents can access the medications they need to stay healthy.
Here’s what it would mean for Nevadans:
- Ensure that all residents have access to more affordable prescriptions. The cost of prescription drugs has been steadily increasing, and this has made it difficult for many people to access the medications they need. By adopting a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare, Nevada can help to make prescription drugs more affordable for all residents, regardless of their income level or health insurance status.
- Reduce health care costs. High prescription drug costs not only impact individual patients, but they also contribute to higher healthcare costs overall. By lowering prescription drug costs, Nevada can help to reduce healthcare costs for everyone in the state, including individuals, families, and businesses.
- Stimulate the state’s economy. High prescription drug costs are a burden on businesses, especially small businesses, that offer health insurance to their employees. By lowering prescription drug costs, Nevada can help to reduce the burden on businesses, which can in turn help to stimulate economic growth and create new jobs.
Drug companies are reporting record earnings, but they are still hiking prices that Americans pay for the drugs they need to survive. Reuters reported that five of the largest drug companies in the world would hike the prices of more than 350 drugs in 2023.
While 565,000 Nevada seniors (approximately 17% of the states’ population) enrolled in Medicare will soon enjoy the benefits of the negotiated prices of some of the most expensive prescription medicines, the rest of us will be left facing the full amount that the pharmaceutical companies can charge us – which can put the medicines we need for our health out of our reach.
That’s why the Nevada Legislature should adopt Assembly Bill 250, which will let EVERYONE in Nevada take advantage of the same negotiated drug discounts that Medicare recipients will soon receive.
Nevada should adopt a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare for everyone. It’s time for Nevada to take action to address the high cost of prescription drugs and ensure that all residents can access the medications they need to stay healthy.
Here’s what it would
mean for Nevadans:
- Ensure that all residents have access to more affordable prescriptions. The cost of prescription drugs has been steadily increasing, and this has made it difficult for many people to access the medications they need. By adopting a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare, Nevada can help to make prescription drugs more affordable for all residents, regardless of their income level or health insurance status.
- Reduce health care costs. High prescription drug costs not only impact individual patients, but they also contribute to higher healthcare costs overall. By lowering prescription drug costs, Nevada can help to reduce healthcare costs for everyone in the state, including individuals, families, and businesses.
- Stimulate the state’s economy. High prescription drug costs are a burden on businesses, especially small businesses, that offer health insurance to their employees. By lowering prescription drug costs, Nevada can help to reduce the burden on businesses, which can in turn help to stimulate economic growth and create new jobs.
Drug companies are reporting record earnings, but they are still hiking prices that Americans pay for the drugs they need to survive. Reuters reported that five of the largest drug companies in the world would hike the prices of more than 350 drugs in 2023.
While 565,000 Nevada seniors (approximately 17% of the states’ population) enrolled in Medicare will soon enjoy the benefits of the negotiated prices of some of the most expensive prescription medicines, the rest of us will be left facing the full amount that the pharmaceutical companies can charge us – which can put the medicines we need for our health out of our reach.
That’s why the Nevada Legislature should adopt Assembly Bill 250, which will let EVERYONE in Nevada take advantage of the same negotiated drug discounts that Medicare recipients will soon receive.
Here’s what it would
mean for Nevadans:
- Ensure that all residents have access to more affordable prescriptions. The cost of prescription drugs has been steadily increasing, and this has made it difficult for many people to access the medications they need. By adopting a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare, Nevada can help to make prescription drugs more affordable for all residents, regardless of their income level or health insurance status.
- Reduce health care costs. High prescription drug costs not only impact individual patients, but they also contribute to higher healthcare costs overall. By lowering prescription drug costs, Nevada can help to reduce healthcare costs for everyone in the state, including individuals, families, and businesses.
- Stimulate the state’s economy. High prescription drug costs are a burden on businesses, especially small businesses, that offer health insurance to their employees. By lowering prescription drug costs, Nevada can help to reduce the burden on businesses, which can in turn help to stimulate economic growth and create new jobs.
Nevada should adopt a law that requires the state to use the negotiated prices of pharmaceutical drugs in Medicare for everyone. It’s time for Nevada to take action to address the high cost of prescription drugs and ensure that all residents can access the medications they need to stay healthy.
FAQS
Study after study, poll after poll reveal the escalation of high cost of prescription drugs does real damage to the quality of life for all our constituents.
AB250 is remarkably simple and elegant in its approach. After the federal government does all the work on behalf of our seniors negotiating prices for certain prescriptions, this bill says that negotiated price becomes the MOST anyone can pay for that prescription in Nevada.
Yes. This legislation sets the upper limit. There is no floor.
Because of the passage of the Inflation Reduction Act in August of 2022, for the first time, Medicare will negotiate directly with manufacturers for the price of certain high-spending brand-name Medicare Part B and Part D drugs that don’t have competition.
No. The Federal Government, through Medicare, will do all the work of researching, identifying, and negotiating the eligible drugs. AB250 simply allows everyone else to benefit from those efforts without having to do the work in Nevada.
Furthermore, this bill will reduce costs to taxpayers since the state will reap the benefits of lower costs of drugs for the state employee health plan, and for other state administered health programs such as for incarcerated persons.
Absolutely not. This bill simply adopts by reference what will already happen under the Inflation Reduction Act. Nothing in AB 250 changes what will already occur. Furthermore, the argument that drug makers need to set prices high to cover research and development costs is not supported by the evidence – research shows no correlation between a drug’s price and its research and development costs1.
The new federal law gives drug companies at least nine years for their drugs to be on the market before they are eligible for Medicare negotiation.
No. The Inflation Reduction Act discourages that practice by requiring drug manufacturers to pay a rebate to the federal government if prices for single-source drugs and biologicals covered under Medicare Part B and nearly all covered drugs under Part D increase faster than the rate of inflation (CPI-U).
Since the Supreme Court’s Rutledge decision (12/2020), the ERISA federal law protects employer benefits (covered services) from state regulation, not their payment rates to state-licensed providers.Because the Maximum Fair Price is a Medicare payment rate, there is no preemption of Medicare either.
A violation of the commerce clause occurs when a state law or regulation significantly affects how a business operates outside of the state. Because the Medicare maximum fair price is national in impact, when adopted by the state there is no dormant commerce clause violation: the maximum fair price inside the state will not change a company’s operations outside of Nevada.
No, 340 B drug purchases by hospitals will continue to function as they do now. For drugs with a Maximum Fair Price, hospitals must bill health plans no more than the Maximum Fair Price. The 340B supply chain and Prime Vendor program would not change.
This bill takes a moderate approach, it also takes a no-surprises approach. Health Insurance companies, businesses, pharmaceutical manufacturers deserve to know the lay of the land when they are preparing for future costs. By enacting this now, businesses, the state, and consumers will be able to plan for future savings and expenditures to ensure they can maximize their budgets and put savings to the best use.
Study after study, poll after poll reveal the escalation of high cost of prescription drugs does real damage to the quality of life for all our constituents.
AB250 is remarkably simple and elegant in its approach. After the federal government does all the work on behalf of our seniors negotiating prices for certain prescriptions, this bill says that negotiated price becomes the MOST anyone can pay for that prescription in Nevada.
Yes. This legislation sets the upper limit. There is no floor.
Because of the passage of the Inflation Reduction Act in August of 2022, for the first time, Medicare will negotiate directly with manufacturers for the price of certain high-spending brand-name Medicare Part B and Part D drugs that don’t have competition.
No. The Federal Government, through Medicare, will do all the work of researching, identifying, and negotiating the eligible drugs. AB250 simply allows everyone else to benefit from those efforts without having to do the work in Nevada.
Furthermore, this bill will reduce costs to taxpayers since the state will reap the benefits of lower costs of drugs for the state employee health plan, and for other state administered health programs such as for incarcerated persons.
Absolutely not. This bill simply adopts by reference what will already happen under the Inflation Reduction Act. Nothing in AB 250 changes what will already occur. Furthermore, the argument that drug makers need to set prices high to cover research and development costs is not supported by the evidence – research shows no correlation between a drug’s price and its research and development costs1.
The new federal law gives drug companies at least nine years for their drugs to be on the market before they are eligible for Medicare negotiation.
No. The Inflation Reduction Act discourages that practice by requiring drug manufacturers to pay a rebate to the federal government if prices for single-source drugs and biologicals covered under Medicare Part B and nearly all covered drugs under Part D increase faster than the rate of inflation (CPI-U).
Since the Supreme Court’s Rutledge decision (12/2020), the ERISA federal law protects employer benefits (covered services) from state regulation, not their payment rates to state-licensed providers.Because the Maximum Fair Price is a Medicare payment rate, there is no preemption of Medicare either.
A violation of the commerce clause occurs when a state law or regulation significantly affects how a business operates outside of the state. Because the Medicare maximum fair price is national in impact, when adopted by the state there is no dormant commerce clause violation: the maximum fair price inside the state will not change a company’s operations outside of Nevada.
No, 340 B drug purchases by hospitals will continue to function as they do now. For drugs with a Maximum Fair Price, hospitals must bill health plans no more than the Maximum Fair Price. The 340B supply chain and Prime Vendor program would not change.
This bill takes a moderate approach, it also takes a no-surprises approach. Health Insurance companies, businesses, pharmaceutical manufacturers deserve to know the lay of the land when they are preparing for future costs. By enacting this now, businesses, the state, and consumers will be able to plan for future savings and expenditures to ensure they can maximize their budgets and put savings to the best use.
1 Wouters OJ, Berenbrok LA, He M, Li Y, Hernandez I. Association of Research and Development Investments With Treatment Costs for New Drugs Approved From 2009 to 2018. JAMA Netw Open. 2022;5(9):e2218623. doi:10.1001/jamanetworkopen.2022.18623
AB250 would help ensure that all residents have access to more affordable prescription drugs, reduce health care costs overall, and stimulate the state's economy. It's time for Nevada to take action to address the high cost of prescription drugs and ensure that all residents can access the medications they need to stay healthy.
AB250 would help ensure that all residents have access to more affordable prescription drugs, reduce health care costs overall, and stimulate the state's economy. It's time for Nevada to take action to address the high cost of prescription drugs and ensure that all residents can access the medications they need to stay healthy.