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Senate Health Care panel hears call to expand reporting on manufacturer-funded patient assistance programs
Summary
State staff told the Senate Committee on Health Care that Oregon's drug-price reporting misses most manufacturer-funded patient assistance programs and recommended a new annual report requiring manufacturers to submit PAP data for all drugs that benefit Oregon consumers.
The Senate Committee on Health Care on Feb. 2 heard state agency staff recommend expanding Oregon's prescription drug transparency reporting to require annual disclosure of manufacturer-funded patient assistance program (PAP) data for all programs that provide benefits to Oregon consumers.
The recommendation, presented by Jesse O'Brien, policy manager at the Division of Financial Regulation (Department of Consumer and Business Services), and Sarah Young, executive director of the Oregon Prescription Drug Affordability Board, would change the program's reporting trigger so PAP data are collected for all programs rather than only as part of annual reports triggered by large price increases.
Why it matters: Presenters told the committee that current law requires manufacturers to report PAP information only when a drug costs more than $100 for a 30-day supply and experienced a price increase of 10% or more in the prior calendar year. Sarah Young said that reporting threshold misses many high-cost or high-volume drugs because manufacturers increasingly launch products at high initial prices and avoid repeated double-digit annual increases. "We don't collect data on most prescription drug assistance programs that are active in the state," Young said, noting significant gaps in Oregon-specific data.
What presenters said: The staff defined three PAP types — direct manufacturer assistance (coupons, prepaid debit cards, free product), manufacturer-funded nonprofit programs (often separate 501(c)(3) entities affiliated with a manufacturer), and independent charitable PAPs. Young cited a 2022 Congressional Research Service report showing manufacturer direct patient-assistance spending rising from about $8,000,000 in 2013 to roughly $14,000,000 in 2020 (the 2020 figure reflects newly reported prepaid debit-card spending). She also said income-eligibility ceilings commonly range from about 300% to 500% of the federal poverty level and that a 2019 survey found about "97 percent of those programs excluded uninsured patients."
The staff highlighted how the payment chain and tax incentives intersect: manufacturers can donate drug product or funds to third-party foundations and deduct those donations for tax purposes while insurers and pharmacies still receive reimbursement under usual contracting, a fact Patterson characterized as allowing manufacturers to reduce some patient costs while still receiving payment and tax benefits.
Committee questions and next steps: Senators asked about other recommendations in the report — including copay-accumulator reporting, expanded bulk purchasing, centralized Medicaid purchasing and centralized pharmacy analytics — and whether DCBS or the Oregon Health Authority would lead follow-up legislation. O'Brien said DCBS would assist but that other agencies and statutory authority may determine the best sponsor and scope; he noted the short legislative session could limit how much the committee's bill can address this year. Presenters said the full 2025 Drug Price Transparency report and recommendations have been uploaded to OLIS for committee review.
The committee did not vote on any policy changes during the informational meeting. Chair Deb Patterson closed the session and said the committee would meet again on Wednesday, Feb. 4 at 3 p.m.
