SB 1749 Summary

• Establishes the Prescription Drug Affordability Board as an independent state agency with five members and three alternates appointed by the governor to protect residents and stakeholders from high prescription drug costs.

• Board identifies prescription drug products for affordability review based on criteria including brand-name drugs with launch costs of $30,000+ annually, price increases of $3,000+ in 12 months, biosimilars launching below 15% of reference biologic cost, and generic drugs with costs of $100+ per supply or 200%+ price increases.

• Board may establish upper-payment limits on prescription drugs after conducting affordability reviews that consider wholesale acquisition costs, manufacturer discounts, therapeutic alternatives, patient cost-sharing, and other factors; limits apply to all state-regulated health plans and providers in Arizona.

• Creates a Prescription Drug Affordability Stakeholder Council with 20 members representing health advocates, seniors, providers, researchers, insurers, manufacturers, pharmacists, and other stakeholders to provide input on board decisions.

• Establishes the Prescription Drug Affordability Fund financed by annual manufacturer assessments based on gross revenue from drug sales in Arizona to support board operations; appropriates state general funds for initial establishment in fiscal year 2021-2022.