Gov. Healey signs new prescription drug law

Massachusetts Gov. Maura Healey signed a new law Wednesday promoting greater transparency on prescription drug pricing as a step toward tackling the high cost of health care and medications. The law will help us better understand what is driving the high prices. 

The law requires pharmacy benefit managers (PBMs) — middlemen who broker transactions between drug manufacturers, insurers and pharmacies — to get licenses; requires both PBMs and pharmaceutical manufacturing companies to testify at the state’s annual health care cost trends hearing on a range of factors underlying prescription drug costs; and ensures pharmacies charge consumers the lowest cost for their prescriptions at the pharmacy. 

“It’s about time that people know why their medications are so expensive,” said Deirdre Cummings, MASSPIRG’s Legislative Director, who testified before the state legislature’s Joint Committee on Health Care Financing. 

Pharmaceutical spending outpaces other health care spending in Massachusetts. The rising cost of prescription drugs is a leading driver in rising overall health care costs affecting consumers, employers, and taxpayers.

While we still have a lot of work to do to rein in the cost of overpriced prescription drugs, this new law will provide much needed data and transparency on drug pricing. You can’t fix what you can’t see, so this greater clarity will be an important step toward lowering drug prices and overall health care costs.