The Prescription Drug Cost and Affordability Review Act establishes a Prescription Drug Affordability Board and a Prescription Drug Affordability Stakeholder Council in Kansas. The board, composed of five members appointed by the governor with expertise in healthcare-related fields, will work alongside the council, which includes representatives from drug manufacturers, healthcare advocates, and the public. Their primary responsibility will be to review prescription drug costs and set upper payment limits for certain medications based on criteria such as wholesale acquisition costs and affordability challenges. The board will begin selecting drugs for review starting January 1, 2027, focusing on those with high costs or significant price increases.

The bill outlines enforcement mechanisms, including penalties for violations and an appeals process for aggrieved parties, governed by the Kansas administrative procedure act. It also mandates the creation of a prescription drug affordability fund to finance the board's operations, with expenditures subject to appropriation acts. Additionally, the board is required to submit an annual report to the legislature starting in 2026, detailing price trends and recommendations for enhancing affordability. A one-time study on generic drug pricing will also be conducted before the 2027 legislative session. The act will take effect upon its publication in the statute book.