Maine Passes Drug Transparency Law – A Study

We try to keep our readers in the loop with transparency and other related legislation that are happening throughout the country. On May 1, 2018, the governor of Maine, Paul LePage, allowed legislation to pass into law without his signature that: (1) authorizes a study to review and overview drug prices and (2) has implications for top 25 drugs of different types.

As noted in our previous article on the legislation, the Maine Data Health Data Organization now will be required to provide a report containing the following information about brand name and generic drugs by December 1, 2018, and annually thereafter: the 25 most frequently prescribed drugs in Maine; the 25 costliest drugs as determined by the total amount spent on those drugs in the state; and the 25 drugs with the highest year-over-year cost increases as determined by the total amount spent on those drugs by the state.

The Report

One interesting piece of the legislation that we have not previously noted is that the legislature, and Governor LePage by allowing the bill to go into law, are paying the Maine Health Data Organization$25,000.00 for an initial investment of the report and plan.

As outlined in the legislation, the Maine Health Data Organization (MHDO) will be responsible for developing a plan to collect data from manufacturers related to the cost and pricing of prescription drugs in order to provide transparency in and accountability for prescription drug pricing.

MHDO also shall consult with other state and national agencies and organizations to determine how to institute such data collection. The organization shall submit the plan, its findings and any recommendations for suggested legislation to the Legislature no later than April 1, 2019.

The joint standing committee of the Legislature that has jurisdiction over judiciary matters may report out legislation related to prescription drug price transparency and MHDO’s findings and recommendations to either the First or Second Regular Session of the 129th Legislature.

The initial investment is a “one-time allocation” to allow the MHDO to “collect and present certain data to the Legislature and to develop a plan for further data collection.” Such verbiage makes it seem as though this $25,000.00 will be enough for year one, but it is almost impossible to say if that amount will be enough for future collection years, or if after one year the MHDO will come back and request more or less money to achieve the goals set forth by the legislation.

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