The bill requires the Executive Office of Health and Human Services (EOHHS) to submit a comprehensive report on MassHealth pharmaceutical spending and utilization for fiscal years 2025 and 2026. This report will detail total spending on pharmaceuticals, estimated revenues from supplemental rebates and federal financial participation (FFP), and projected savings from rebate negotiations. EOHHS 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 are expected to yield substantial savings for the Commonwealth.

As of February 1, 2026, EOHHS has established supplemental rebate contracts for 97 drugs, including 11 value-based agreements, with an estimated annual rebate value of around $650 million. The report indicates that MassHealth spent $3.01 billion on pharmaceuticals in FY25, receiving $1.69 billion in rebates, and anticipates spending $3.36 billion in FY26 with expected rebates of $1.75 billion. The addition of new drugs to the MassHealth Drug List has been ongoing, with 71 drugs added in FY25 and additional drugs in FY26, although the fiscal impact of these additions is typically delayed.