The Prescription Drug Cost and Affordability Review Act establishes a framework in Kansas for reviewing 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 prescription drugs for affordability reviews based on criteria like high wholesale acquisition costs or significant price increases, and it may set upper payment limits for these drugs if their costs pose affordability challenges for healthcare systems or patients.

The act outlines procedures for implementing these upper payment limits, which will take effect six months after establishment, and prohibits reimbursement amounts exceeding these limits. It allows the attorney general to investigate violations and provides a process for appeals against board decisions. Additionally, the act mandates the board to adopt rules for implementation and creates a prescription drug affordability fund within the state treasury to finance the board's operations. Starting in 2026, the board must submit an annual report to the legislature on price trends and conduct a one-time study on generic drug pricing before the 2027 legislative session. The act will take effect upon publication in the statute book.