The Prescription Drug Cost and Affordability Review Act establishes a new framework in Kansas for reviewing and regulating the costs of prescription medications. It creates the Prescription Drug Affordability Board, composed of five members appointed by the governor, and the Prescription Drug Affordability Stakeholder Council, which includes representatives from various sectors such as manufacturers and healthcare providers. The board will select specific prescription drugs for affordability reviews based on criteria like high acquisition costs or significant price increases, and it has the authority to set upper payment limits for these drugs if they are deemed unaffordable for healthcare systems or patients.

Additionally, the act outlines procedures for implementing these payment limits, which will be enforced six months after establishment, and prohibits purchasers and third-party payers from buying or reimbursing drugs above these limits. The attorney general is granted the power to investigate violations and take civil action as needed. The bill also allows for appeals of board decisions, mandates annual reporting on drug price trends starting in 2026, and requires a comprehensive study on generic drug pricing before the 2027 legislative session. A prescription drug affordability fund will be created to finance the board's operations, with all expenditures subject to appropriation acts.