Substitute Bill No. 8 is a comprehensive legislative proposal aimed at improving drug affordability and establishing a Canadian prescription drug importation program in the state. The program, which requires federal approval, is designed to import prescription drugs from Canada that could yield significant cost savings. The bill sets criteria for eligible drugs, excluding controlled substances and biological products, and mandates that participating wholesalers comply with safety and quality standards, including laboratory testing for drug authenticity and degradation. The bill also establishes the Prescription Drug Affordability Board within the Office of Health Strategy to advise on drug affordability issues and requires the executive director to submit annual reports on the program's operations.

The bill further outlines the creation of a Prescription Drug Affordability Stakeholder Council to advise the board on drug affordability decisions. It defines various terms related to prescription drugs and sets forth the board's responsibilities, including identifying drugs that pose affordability challenges and recommending upper payment limits. The bill prohibits state entities and health plans from purchasing drugs above these limits and requires savings to be used to reduce healthcare costs for consumers. Penalties are introduced for manufacturers that fail to provide notice before withdrawing a drug from sale or for impending drug shortages. Additionally, the bill mandates that eligible insulin products be offered with no copayment or out-of-pocket costs. The bill also includes provisions to prevent drug shortages by requiring hospitals and drug purchasing agencies to maintain a reserve inventory and comply with quality control measures. Civil penalties are established for violations related to the 340B drug pricing program. The bill's provisions are set to take effect on various dates, primarily July 1, 2024, and January 1, 2025, with no deletions indicated in the provided text.

Statutes affected:
HS Joint Favorable Substitute:
File No. 309:
JUD Joint Favorable: