(The Center Square) – Illinois may soon have a prescription affordability board to impose price caps on drugs, but questions are being raised over the proposed board’s potential effectiveness and lack of budget appropriations.
Senate Bill 3496 was filed in February to ensure proper licensing of nurses, but the bill text was gutted and replaced by House Amendment 1 to establish a Prescription Drug Affordability Board.
State Rep. Nabeela Syed, D-Palatine, told the House Executive Committee on Wednesday the board would be independent of any other state agency and would set maximum prices for drugs.
“The board will consider a broad range of economic factors when setting appropriate payment limits, allowing pharmaceutical manufacturers the opportunity to justify the existing drug costs,” Syed said.
Syed said the board would be required to prioritize and implement payment limits on the first ten drugs negotiated by Medicare first. The additional number of drugs for which the PDAB could cap prices would be limited to two per year in a five-year sunset clause.
Pharmaceutical and Research Manufacturers of America Deputy Vice President of State Advocacy Peter Fotos said patients would not be guaranteed a benefit.
“Extensive survey evidence indicates that UPLs, or upper payment limits, are likely to trigger changes in formularies, tiering, cost sharing and provider reimbursement that can offset or even completely mitigate the intended patient benefit,” Fotos said.
According to Fotos, PDABs have never lowered the price of drugs and arbitrary price caps would threaten access and innovation.
Citizen Action Illinois Executive Director Anusha Thotakura told state Rep. Jackie Haas, R-Kankakee, that the board would have its own fund for budget appropriations.
“This board is fully funded by an assessment on manufacturers, but as you mentioned, to start the board there would need to be some additional funds,” Thotakura said.
Syed said there would be an estimated cost of $750,000 for PDAB operations that would be paid back to the state by the fees on drug manufacturers.
State Rep. Ryan Spain, R-Peoria, questioned Syed about how the board would get started before it started collecting fees.
“If you’re concerned about this fiscal year budget, this is not a line item that is being actively discussed is my understanding,” Syed said.
“That’s the problem then. That’s a reason to not pass this bill,” Spain said.
Spain said the board would be an operational mess without an agency assigned to work with it.
SB 3496 passed out of committee by a vote of 8-4.
