The bill requires the Executive Office of Health and Human Services to submit a comprehensive report detailing pharmaceutical spending and revenue for fiscal years 2024 and 2025. This report will include total spending on pharmaceuticals, estimated spending for the upcoming fiscal year, actual and projected revenue from supplemental rebates and federal financial participation, and the impact of new drugs added to the MassHealth drug list. The goal of this initiative is to manage rising drug costs while ensuring access to necessary medications for MassHealth members.

MassHealth has been actively negotiating with drug manufacturers to secure supplemental and value-based rebate agreements, which have significantly increased the pace of these negotiations and the total annual rebate value. In fiscal year 2024, MassHealth spent $2.74 billion on pharmaceuticals and received $1.59 billion in rebates, with projections indicating a rise in spending and rebates for fiscal year 2025. The report will also track the addition of new drugs to the MassHealth Drug List and their associated costs, emphasizing the importance of maintaining access to FDA-approved drugs regardless of rebate agreements.