House Budget Changes Includes Drug Price Controls

Among the multitude of changes to the state’s main operating budget under House Bill 166 was a provision to tie drug prices to an unproven foreign-based pricing index.

Medicaid spending is always a controversial topic in budget legislation, but any time the heavy hand of government is inserted into the marketplace, customers tend to lose in the long term as innovation is stifled. For these reasons, the Pharmaceutical Research & Manufacturers of America (PhRMA) submitted testimony in the Senate this week.

The OMA is concerned that price controls would not stop with medication, but would apply to other products purchased by government. 5/16/2019

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