Senate Bill 21-175, a bill passed by the Colorado Legislature and enacted by Governor Jared Polis earlier this year, established the Prescription Drug Affordability Review Board and the Prescription Drug Affordability Advisory Council. Both agencies will be housed in the Colorado Insurance Division, which is part of the Department of Regulatory Agencies (DORA). The goal of the review committee and advisory board is to save Coloradian money on prescription drugs and bring transparency to the high drug costs in our state.
Applications for both groups are currently open and the Division encourages anyone with the necessary background, experience and interest to apply.
Prescription Drug Affordability Review Board
The Prescription Drug Affordability Review Board will have the authority to review prescription drug costs and assess their impact on the people of Colorado through the following responsibilities and activities.
- Collect and assess prescription drug cost data to identify drugs that may be subject to an affordability review.
- Perform affordability reviews if certain drug cost triggers occur, including high wholesale costs and significant cost increases in various categories. The Board then determines whether a prescription drug is unaffordable for Colorado consumers by analyzing several factors.
- If a drug turns out to be unaffordable, the Commission can set an upper payment limit (UPL). However, the Board will not be able to set prices – the UPL simply caps the amount that state buyers can pay for a drug.
- Make policy recommendations to the Colorado Legislature.
- The Council will meet every six weeks from November 2021.
Applications for the Prescription Drug Affordability Board are currently open. Applicants are encouraged to apply no later than August 15, 2021.
- A graduate degree and experience or expertise in healthcare economics or clinical medicine
- Must not be an employee, board member or consultant of a manufacturer or a professional association of manufacturers; a carrier or a professional association of carriers; or a pharmacy benefit manager or professional association of pharmacy benefit managers
- In addition, applicants must disclose any potential conflict of interest.
Apply for the Prescription Drug Affordability Board
Prescription Drug Affordability Advisory Council
To ensure its work is transparent and informed by a variety of stakeholders, the Council will also appoint a Prescription Drug Affordability Advisory Council to provide input. The Advisory Board will be composed of 15 members with a variety of health care experience and will meet every three months.
The board will seek to appoint members who have experience serving underserved communities and who reflect the diversity of the state in terms of race, immigration status, income, disability, age, gender identity and geography. In addition, the composition of the board will include the following categories.
- Two members who are health care consumers or who represent health care consumers
- A member representing a statewide healthcare consumer advocacy organization
- A member representing health care consumers living with chronic illnesses
- A member representing a union
- A member representing employers
- A member representing the health insurance funds
- A member representing pharmaceutical benefit management companies
- A member representing health professionals with the power to prescribe
- A member who is employed by an organization that conducts research regarding prescription drugs, including research regarding pricing information
- A member representing brand name drug manufacturers
- A member representing generic drug manufacturers
- A member representing pharmacists
- A member representing wholesalers
The 15th member should be the executive director of the Department of Health Care Policy and Financing or his representative.
Regarding geographic diversity, the council will seek to nominate at least one Eastern Plains Council member and one Western Slope member. In addition, the Council will endeavor to appoint members from each congressional district of the state.
Applications for the Prescription Drug Affordability Advisory Council are currently open, and candidates for the Advisory Council are encouraged to apply no later than October 1, 2021.
Candidate Requirements – Board members must have knowledge of at least one of the following topics.
- The pharmaceutical business model
- Supply chain business models
- Practice of medicine or clinical training
- Perspectives from healthcare consumers or patients
- Trends and drivers of health care costs
- Clinical research and health services
- The state health care market
Request the Prescription Drug Affordability Advisory Council
Find more information on the Colorado Prescription Drug Affordability Review Board & Advisory Council Division of Insurance website.
This press release was provided by the Colorado Insurance Division.