State Legislatures are Focused on Prescription Drug Pricing.

For the past five or so years, red and blue states alike have been passing bipartisan prescription drug bills on a broad variety of topics, including cost sharing and deductibles, transparency, pharmacy benefit managers, and affordability.

On a national scale, it can be hard to trace the impact of each individual bill. However, as Congress continues to shine a light on prescription drugs, state policy actions are beginning to have national ripple effects.

States' interest in prescription drug laws are not new.

National Conference of State Legislatures bill tracker reports that since 2015, over 1200 bills related to prescription drugs have been enacted in 50 states, D.C., and Puerto Rico.

National Academy for State Health Policy tracker, which focuses specifically on drug pricing, counted an average of 50 enacted laws from about 33 states per year across 2017-2021.

2022 is on track to meet, if not surpass, the number of bills introduced and ultimately enacted. Here's what industry stakeholders need to know to ensure they're ready for the next wave of state laws.

States' scope may be narrow, but their impact can be felt nationally.
State governments do not have the authority of federal lawmakers. Their power in the prescription drug space is often limited to state employee health plans, Medicaid plans, and plans on the individual market. When they pass regulations on entities like PBMs, these laws are often challenged in court, and the legal precedents can vary from jurisdiction to jurisdiction.

Still, the U.S. government is designed so that state laws push the federal government forward, and prescription drug laws are no exception. Examples of the different ways that state and federal governments push and pull each other towards legislative change are highlighted below.

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