The governor is seeking authority to negotiate lower drug prices for MassHealth, the state’s Medicaid program. Unless state law is changed, administrators for MassHealth can’t require pharmaceutical companies to negotiate.
And the proposal goes a step further than permitting direct negotiation. If talks between drugmakers and MassHealth are unsuccessful, the administration wants to refer the expensive medication to the Health Policy Commission for review. Currently, the commission serves as a watchdog for hospital costs. The proposal would grant the panel more oversight of drug prices as well.
Under the proposal, the commission could require pharmaceutical companies to justify their prices in documents or public hearings. From there, if the drug price is deemed unreasonable the case could be referred to the attorney general’s office for investigation.
Baker administration officials said that they could save about $80 million in the next fiscal year if direct negotiations were required.
The pharmaceutical industry immediately objected to the proposal, arguing that “dangerous price controls” could limit a patient’s access to medications.
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