Medicaid reform that protects a safety net for people in need — and pays providers appropriately — is the big fish Elizabeth New (Hovde) sees that needs to be fried
Elizabeth New (Hovde)
Washington Policy Center
Prescription drug costs are a problem for many Washingtonians. Lawmakers are understandably anxious to do something to curb them. But having a Prescription Drug Affordability Board with the authority to set price controls on manufacturers could limit the availability of life-saving drugs in Washington state. Disruption in the market of innovation is assured with this board, lower prices are not.
In 2022, the state Legislature created a board to identify drugs that it thinks too costly and set upper payment limits for them. Where’s the board at with that? A draft legislative report says, “In 2024, the board’s focus was on building and narrowing down an initial list of drugs that could be selected for affordability review.” In 2025 the group will give input on specific drugs.
If you want to learn more about the board’s ongoings, the five-member group has its next meeting from 8:30 to noon on Wednesday.
Pharmaceutical drug pricing is complex. Manufacturers do not control the final price of their drugs. They are subject to many players and several layers of price increases built into the system before they reach patients. Insurance companies, pharmaceutical benefit managers, employers and retail pharmacies all contribute to the prices patients pay. Setting upper pay limits on drugs and assessing penalties on manufacturers could not only limit access and stifle innovation, it could have us focused on and shooting at the wrong target.
Just as health care professionals should think holistically about patient well-being, lawmakers need to think holistically about health care prices and cost containment. And they should start by controlling what is in their control, starting with fewer regulations and insurance mandates, allowing for more patient choice. Rewarding greater price transparency could be pursued. Medicaid reform that protects a safety net for people in need — and pays providers appropriately — is the big fish I see that needs to be fried.
Read more about the Washington Policy Center’s concerns with the affordability board here. The agenda for the meeting on Wednesday, Sept. 18, is here.
Elizabeth New (Hovde) is a policy analyst and the director of the Centers for Health Care and Worker Rights at the Washington Policy Center. She is a Clark County resident.
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