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 resulted in significant annual rebate values and have not negatively impacted consumer access to necessary medications.

In fiscal year 2025, MassHealth spent $3.01 billion on pharmaceuticals, receiving $1.69 billion in rebates, while for fiscal year 2026, it estimates spending will rise to $3.36 billion with expected rebates of approximately $1.75 billion. The report also notes the addition of new drugs to the MassHealth Drug List, with spending on these drugs anticipated to increase. The bill emphasizes the importance of managing drug costs while maintaining access to covered outpatient drugs for MassHealth members.