HB 2245 Summary

• Establishes the Arizona Affordable Drug Manufacturing program within the Department of Health Services to enter into partnerships for manufacturing and distributing generic prescription drugs to increase competition, lower prices, and address market shortages.

• Requires partnerships with FDA-registered drug manufacturers that produce drugs at prices resulting in savings, targets market failures, and improves patient access, with transparent pricing and no rebates except federally required ones.

• Mandates prioritization of at least one form of insulin if viable manufacturing pathways exist, along with drugs for chronic and high-cost conditions, determined using Arizona Health Care Cost Containment System pharmacy spending data.

• Requires the department to consult with state purchasers (AHCCCS, ASR, Department of Administration, Department of Corrections), health insurers, hospitals, and pharmacy benefit managers to identify targeted drugs and procurement volumes.

• Requires reports to the governor and legislature by July 1, 2025 on drug targeting status and competitive impact, and by July 1, 2026 on feasibility of direct manufacturing; protects proprietary cost and pricing information as confidential.