On January 22, 2025, the Maryland Legislature introduced Senate Bill 357, a significant piece of legislation aimed at regulating prescription drug pricing within the state. The bill seeks to establish upper payment limits for prescription drugs, addressing the growing concern over the affordability of medications for Maryland residents.

The primary provisions of Senate Bill 357 include the establishment of a framework for setting upper payment limits on prescription drugs, which would be monitored by a designated Board. Notably, the bill prohibits the application of these limits on any drug listed as being in shortage by the federal Food and Drug Administration (FDA). This provision aims to ensure that patients have access to essential medications during times of scarcity.

Additionally, the bill outlines a process for the Board to reconsider previously set upper payment limits if a drug becomes scarce. However, it explicitly states that no new limits can be established for drugs currently in shortage, nor can existing limits be enforced against Medicare reimbursement requirements. This aspect of the bill has sparked discussions among stakeholders regarding its potential impact on pharmacies and healthcare providers.

The legislative process surrounding Senate Bill 357 has seen some debate, particularly concerning the balance between controlling drug costs and ensuring the availability of medications. Critics argue that while the bill aims to protect consumers from exorbitant prices, it may inadvertently lead to supply issues if pharmacies are unable to sustain their operations under the proposed limits. Supporters, however, emphasize the necessity of regulating drug prices to alleviate the financial burden on patients.

The economic implications of this bill could be substantial, as it seeks to address the rising costs of prescription drugs that have been a significant concern for many Maryland residents. By potentially lowering drug prices, the bill could improve access to necessary medications, thereby enhancing public health outcomes.

Senate Bill 357 is currently under review, with the Board required to submit any plans of action to the Legislative Policy Committee for approval. If the Committee does not approve the plan within 45 days, it will then be submitted to the Governor and the Attorney General for further consideration. The outcome of this bill could set a precedent for how prescription drug pricing is managed in Maryland and potentially influence similar legislative efforts in other states.