Sen. Killion introduces legislation seeking to lower prescription drug costs

Sen. Tom Killion (R-Chester/Delaware) introduced legislation last week to substantially lower the cost of prescription medications for Pennsylvania residents.

The Prescription Drug Cost Reduction Act, S.B. 1315, seeks to level drug prices in Pennsylvania with the much lower prices charged in Canada. The United States currently has the highest prescription drug prices in the world, with nearly 20 percent of the county’s healthcare spending directed toward prescription medications, Killion noted in his legislation.

Killion’s proposal is on par with a national effort to reduce prescription prices in the United States. The model legislation was unveiled in August by the National Academy for State Health Policy.

“Pennsylvanians should never have to choose between their medication and paying their electric bill. They should never have to decide if they’ll refill a prescription or put food on their table,” Killion said. “Our drug prices are beyond excessive. My bill will change that.”

Under S.B. 1315, the state would be required to create a list of the 250 most costly prescription drugs per year. Pennsylvania’s Insurance Department would then establish a maximum rate paid by health insurance providers based on Canadian pricing data. Lower medication prices paid by insurers would be passed along to consumers, with fines levied against violations.

“This legislation sets up a simple, low cost mechanism to assure purchasers in the state achieve the same savings as Canada on costly drugs, purchased from the same pharmacies consumers use today. Setting payment rates – not prices – is akin to how we pay for all other health services and is designed to assure any legal challenges can be overcome,” Trish Riley, executive director of the National Academy for State Health Policy, said.