MA S875

Establishes a five-member Prescription Drug Affordability Board within the Health Policy Commission to review drugs with wholesale acquisition costs of $3,000 or more, price increases of $300 or more in 12 months, or price increases of 100% or more in 12 months

Authorizes the Board to set upper payment limits on prescription drugs determined to pose "affordability challenges," with limits applying to all purchases and reimbursements when drugs are dispensed to individuals in Massachusetts

Requires pharmaceutical manufacturers to provide 60-day advance notice before increasing brand-name drug prices by more than 15% annually, and 30-day notice for pipeline drugs, generics, and biosimilars after FDA approval

Mandates detailed annual reporting from payors on the 50 most frequently dispensed drugs, highest-cost drugs, drugs with greatest price increases, and rebate information, with data submitted to the Board

Imposes penalties up to $500,000 per instance on manufacturers who fail to comply with reporting requirements, withdraw drugs subject to upper payment limits, or fail to participate in access and affordability improvement plans in good faith