Maryland Sets First State-Level Price Cap on Diabetes Drug Jardiance

Maryland's Prescription Drug Affordability Board has established the state's first-ever price cap on a prescription medication, targeting Jardiance, a widely prescribed type 2 diabetes drug. The board, functioning like a state utility commission, will cap Jardiance at $204 for a 30-day supply or $6.80 per pill by January 2027, benchmarked against Medicare's maximum fair price and adjusted for inflation. This marks only the second time a state panel has taken such regulatory action. Executive director Andrew York oversees the implementation, which is projected to save state and local governments approximately $320,000 annually through reduced costs in employee health plans.

Maryland's Price Cap Decision on Jardiance

• ▪The Maryland Prescription Drug Affordability Board's price cap on Jardiance marks only the second time a state panel has taken such a step
• ▪The Maryland Prescription Drug Affordability Board is designed to function like a state utility commission
• ▪The Maryland Prescription Drug Affordability Board set an upper payment limit for Jardiance, a widely prescribed type 2 diabetes treatment

Implementation Details and Cost Savings

• ▪The price of Jardiance will be capped at $6.80 per pill in January 2027
• ▪The Maryland Prescription Drug Affordability Board will lower the cost of Jardiance for state and local governments by January 2027
• ▪The Maryland Prescription Drug Affordability Board's price cap on Jardiance is estimated to save $320,000 a year
• ▪The price of Jardiance will be capped at $204 for a 30-day supply in January 2027

State Drug Affordability Board Process

• ▪The Maryland Prescription Drug Affordability Board adjusted the 2027 pricing for Jardiance for inflation
• ▪Andrew York is the executive director of the Maryland Prescription Drug Affordability Board
• ▪The Maryland Prescription Drug Affordability Board benchmarked the expected cost of Jardiance against the maximum fair price paid by Medicare

Perspective of Maryland Prescription Drug Affordability Board

• ▪The Maryland Prescription Drug Affordability Board used Medicare's maximum fair price as the benchmark for determining reasonable drug costs
• ▪The Maryland Prescription Drug Affordability Board's action on Jardiance represents a pioneering state-level approach to pharmaceutical price regulation

Perspective of Pharmaceutical manufacturers

• ▪State-level price caps on prescription drugs like Jardiance could set precedents that undermine pharmaceutical companies' pricing strategies nationwide

Perspective of Maryland state and local governments

• ▪Maryland state and local governments will realize direct budget savings from the Jardiance price cap through reduced employee health plan costs