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Through its enabling statute, the Prescription Drug Affordability Board is required to study the entire pharmaceutical distribution and payment system in Maryland and the policy options being used in other states and countries to lower the list price of pharmaceuticals. This includes setting upper payment limits, using reverse auction marketplaces, and implementing a bulk purchasing process. Following its study, the Board will publish a report on its findings and recommendations, including any necessary legislative action.

The Board is also charged with conducting and reporting a study on the operation of the generic drug market in the United States, including change in prices, the effect on premiums, and the potential for shortages.

Prescription Drug Affordability Board – HB768/SB759