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Prescription Drug Affordability Board Toolkit

Since Maryland enacted the first prescription drug affordability board (PDAB), six other states have followed suit and are at varying points of implementation, working toward their common goal of lowering prescription drug costs. The National Academy for State Health Policy (NASHP) provides technical assistance to states that have created PDABs and partners with the Program on Regulation, Therapeutics and the Law (PORTAL) at Harvard Medical School and Brigham and Women’s Hospital to support effective PDAB implementation. This toolkit includes new materials developed through NASHP and PORTAL’s partnership, as well as resources NASHP has previously compiled to track prescription drug affordability board implementation on the NASHP prescription drug pricing state strategy implementation page.

Resources for Effective PDAB Implementation

In partnership with NASHP, PORTAL has developed the following publications to offer information and considerations relevant to state PDABs conducting affordability reviews and setting upper payment limits.

June 29, 2023

Most PDABs are tasked with conducting affordability reviews. How PDABs define the meaning of a “drug” for the purposes of selecting candidates for these assessments has important consequences for determining which and how many drugs will be considered for affordability reviews.

February 26, 2024

Several state laws require PDABs to identify therapeutic alternatives for drugs that a PDAB selects for affordability review. This memo outlines a methodology for using medical professional associations’ clinical guidelines to identify appropriate therapeutic alternatives for selected drugs, including suggestions for overcoming challenges encountered through use of this methodology.

September 11, 2023

PDAB affordability reviews may consider a drug’s affordability from several angles, including affordability to patients, affordability to the state health care system, and affordability relative to other comparable treatments. This white paper outlines key considerations for PDABs conducting affordability reviews that may inform each of these perspectives and contribute to a holistic assessment of a drug as affordable or unaffordable. This paper discusses factors including affordability definitions, drug regulatory and evidentiary information, drug price and spending metrics, therapeutic alternatives, comparative effectiveness, economic evaluation, patient costs and access, and market dynamics.

February 27, 2024

Some PDABs have authority to set upper payment limits for drugs that they find to be unaffordable to state consumers or the state health system following an affordability review. An upper payment limit (UPL) sets a maximum rate at which a drug can be purchased in the state. States’ enabling PDAB statutes offer some guidance on factors that PDABs must consider while developing UPLs and additionally determine the applicability of a UPL in each state, but PDABs with UPL authority are also tasked with crafting specific processes for UPL development and implementation. This white paper describes three potential strategies that a PDAB may employ to arrive at a UPL: reference pricing, net price, and budgetary thresholds.

NASHP PDAB Resources for States

NASHP has published a variety of resources that detail enacted PDAB laws, track PDAB legislation, and discuss ongoing PDAB implementation.

This chart offers an overview and comparison of state affordability review legislation in the seven states that have passed legislation to create a state prescription drug affordability board as of January 2024. PDAB statutes vary between states in their scope, UPL authority, and staffing allocations.

NASHP tracks legislation to lower prescription drug costs, including PDAB legislation. To see which states have PDAB bills, select “Affordability Review” in the dropdown category menu and browse the state map and accompanying table. 

NASHP Model PDAB Legislation

NASHP has developed model legislation to establish a state PDAB to conduct affordability reviews of certain highcost drugs, and to set upper payment limits for unaffordable drugs.  

August 2022

This bill offers model language for state legislators pursuing the establishment of a prescription drug affordability board. 

August 2022

This Q&A blog discusses the details of NASHP’s model PDAB legislation. The blog explains a PDAB’s structure, funding, purpose, and process, as established by the legislation. 

August 2022

This white paper by Rachel Sachs, JD, MPH, discusses the prescription drug affordability board model, including legal challenges states may face in developing and implementing PDABs and opportunities for states to design their boards to avoid legal concerns.

PDAB State Resources

Each state office charged with PDAB implementation publishes a website that details the board’s membership, meeting schedule, and implementation timeline. PDAB meeting materials and recordings are publicly available, as are any reports published by the board. Below are state PDAB websites, regulations, and all reports published by state boards as of February 2024.

  • Minnesota SF 2744, enacted May 24, 2023
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