Governor's Bill No. 5054 aims to establish the Prescription Drug Affordability Board within the Office of Health Strategy to address the affordability of prescription drugs. The board will consist of five members with relevant expertise and will advise on strategies to reduce drug costs, monitor prices, and promote affordable drugs. It will meet at least four times a year and report annually to the General Assembly. The bill defines key terms related to prescription drugs and empowers the board to collect pricing information, collaborate with other states, and recommend cost containment strategies. It also establishes criteria for identifying drugs that may pose affordability challenges and outlines the board's review process, which excludes certain drug categories like FDA breakthrough and orphan drugs.

Additionally, the bill proposes the creation of the Cost Growth Benchmark Oversight Commission within the Office of Health Strategy, which will consist of thirteen voting members appointed by the Governor. The commission will advise on health care cost growth and quality benchmarks, with the executive director having the final say on recommendations. The bill also outlines a process for health care entities to file performance improvement plans if they exceed cost growth benchmarks, with the possibility of waivers, extensions, or civil penalties for non-compliance. Furthermore, the bill mandates annual public hearings on health care expenditure growth, grants subpoena power to the executive director for inquiries, and requires an annual report to the General Assembly. Lastly, the bill introduces an affordability standard for health insurance policies, requiring carriers to demonstrate compliance before filing premium rates, and gives the executive director the authority to adopt regulations to implement these provisions. The bill contains no deletions from current law and is part of the Governor's budget recommendations.

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