LAS CRUCES, NM – New Mexico Consumers for Affordable Prescriptions today called for the creation of a Prescription Drug Affordability Board at a roundtable discussion with the state’s congressional delegation and Governor Michelle Lujan Grisham, advocating that all New Mexicans would benefit from an independent board with the authority to evaluate the cost of medications and negotiate more affordable rates for New Mexicans.
A key provision of the federal Inflation Reduction Act to allow Medicare to negotiate drug prices is an important step forward for seniors. However, soaring prescription drug costs affect all New Mexicans, and the Inflation Reduction Act underscores the need for state action to fill in the gaps and improve access to affordable medications.
“New Mexicans continue to struggle to afford the medications they need,” said Barbara Webber, Executive Director of Health Action New Mexico. “A Prescription Drug Affordability Board will hold drug companies accountable and negotiate on consumers’ behalf to lower the cost of drugs. I want to thank New Mexico’s federal delegation and Governor Lujan Grisham for their focus on this critical issue.”
A Prescription Drug Affordability Board (PDAB) would consist of independent appointed experts to negotiate on behalf of New Mexico consumers, hold drug companies accountable, and incentivize lower prices for prescription drugs. PDAB strategies may include:
- Creating and utilizing a statewide benefits manager to lower drug costs.
- Securing the lowest-cost drugs available.
- Rewarding New Mexicans when then use discounts and direct mail drug services.
- Ensuring New Mexicans pay the same low cost for drugs as Canadians.
“Enough is enough,” said Joseph P. Sanchez, AARP New Mexico State Director. “While the Inflation Reduction Act is an important step forward for seniors, soaring drug costs affect all New Mexicans, and federal action underscores the need for the state to fill in the gaps and improve access to affordable medications for others, including those on Medicaid, workers who have health insurance through public and private sector coverage, as well as the uninsured. With the establishment of the Prescription Drug Affordability Board, New Mexicans will have an independent advocate that can evaluate prescription drug costs and negotiate reasonable prescription drug prices.”
The Legislative Health and Human Services endorsed the creation of a PDAB at its November 2021 hearing where lawmakers questioned the pharmaceutical industry on anti-consumer practices, including new evidence from the most recent report of the Institute for Clinical and Economic Review on unsupported price increases.
The creation of a PDAB is among the top recommendations for states to determine the true cost of prescription drugs and help make medications more affordable for consumers, according to a bipartisan report by the National Conference of State Legislatures.
- On average, Americans pay three times as much for the same medicines as people in other countries.
- The Journal of the American Medical Association reports 35 big drug companies raked in $8.6 billion in profits between 2000 and 2018.
- Nine of the top ten companies spend more money on marketing and advertising than they do on researching new drugs.
- Nearly half of New Mexicans have skipped taking medication or not filled a prescription because of cost concerns.
Advocates have launched a website, www.newmexicocap.org, with information about drug pricing and state policy options to reduce drug costs.
CONTACT: Barbara Webber, Executive Director, Health Action New Mexico 505-508-6531 (cell) barbara@healthactionnm.org