Mass. governor signs bills capping drug costs and tightening hospital, PBM oversight

Governor Healy signed two health care bills at the State House that impose new limits on out‑of‑pocket prescription costs and expand state oversight of hospital ownership and pharmacy benefit managers.

The measures, enacted after months of negotiation and prompted in part by the collapse of a private‑equity hospital system, aim to lower patient costs for chronic medications, increase transparency around pharmacy benefit managers (PBMs) and drug pricing, and give state regulators broader authority to review changes in ownership and protect local access to care.

At the signing, Governor Healy credited legislative leaders and health advocates for delivering what she called “another chapter” in Massachusetts’ approach to health care. “This law is going to ensure affordable access to critical drugs ... limiting it to $25 per month for brand name drugs,” she said, describing the prescription drug provisions as “a big deal.” Speaker Ron Mariano and Senate President Karen Spilka also praised the bills’ passage and credited committee chairs and members for reaching agreement on two separate, complex conference committee packages.

Key provisions described during the ceremony include a $25 cap on many brand‑name prescription drugs, a health equity provision that Health Care For All said will make at least one generic drug free of charge and one name‑brand drug available at $25 for people with diabetes, heart disease and asthma, and expanded oversight of PBMs. The bills also direct the Health Policy Commission (HPC), the Department of Public Health (DPH), the Center for Health Information and Analysis (CHIA) and the attorney general’s office to have additional tools to review transactions and ownership changes, including private equity acquisitions, that could threaten local hospital access.

Amy Rosenthal, executive director of Health Care For All, said the PACT Act’s health equity provisions could immediately help “at least 100,000 people” with diabetes, heart disease and asthma and also expand the state’s authority to examine the impact of high‑cost drugs. Rosenthal described the bills as the product of advocacy including the Health Equity Compact and neighborhood canvassing in areas affected by hospital closures.

Speakers repeatedly tied the bills to the recent closure of Steward hospitals, saying the new law will strengthen market oversight to reduce the risk of private‑equity‑driven failures. The measures create new review authority over ownership changes and call for work to shore up primary care delivery and financial stability, including a task force on primary care access.

Officials at the ceremony also highlighted existing state achievements and continuing challenges: Massachusetts remains among the top states on coverage and health outcomes, officials said, but hospitals, health centers and plans remain financially stressed and frontline staff are stretched thin. The governor noted the state earlier helped preserve six hospitals and 13,000 jobs during the Steward proceedings and said the new laws will help prevent similar disruptions.

No vote tallies were part of the signing event; lawmakers present credited months of behind‑the‑scenes conference committee work to reach the final language. Officials said further work remains to lower costs and strengthen primary care delivery.

The signing marks enactment of two related packages: the prescription drug pricing provisions (including the PACT Act provisions described at the ceremony) and a market oversight/primary care package that increases the state's review powers and regulatory authority over PBMs and ownership changes.

Officials and advocates said they expect the measures to take effect according to the statutes’ effective dates (not specified at the signing). They also emphasized that additional regulatory work and future legislation will be required to implement several of the bills’ oversight and affordability provisions.