AB250 DOES NOT SOLVE THE PROBLEMS FACING NEVADA FAMILIES

In 2022, Congress passed a new law that allows Medicare to negotiate the prices it pays for certain high-cost prescription drugs. In 2023, some activists are trying to import this federal law to Nevada. Under their bill (AB250), any drugs subject to Medicare negotiations and sold in Nevada must be capped at the Medicare negotiated price. While the bill sounds good in theory, it fails to address the real problems facing Nevadans.

AB250 Helps Insurance Companies, Not Families

Nevadans need help with the cost of prescription drugs, but AB250 doesn’t provide it. AB250 does not do anything to specifically reduce the costs families pay at the pharmacy counter, like copays and deductibles. All it guarantees is that PBMs and insurance companies will pay less for some drugs. Lower costs for insurers does not guarantee lower costs for consumers.

AB250 is a Diversion from the Real Problems Facing Families

Time spent on AB250 is time lost. Instead of helping insurance companies, the legislature should help Nevadans by lowering the price they pay for medicines at the pharmacy, such as making monthly costs more predictable, making cost sharing assistance count and requiring negotiated savings on medicines be shared with patients. AB250 Threatens Access to Treatments and Cures The government can cap the price of drugs, but that does not mean the drug will be available at that price. Under AB250, pharmacies and providers may find they cannot obtain medicines at the government price. In situations like this, patients risk losing access to their medications because of government interference. Government price setting will also reduce incentives for investments in treatments and cures for conditions that impact certain communities, including Black and Brown populations.

AB250 Raises Costs for Businesses and Puts Them at Risk

Under Section 2 of AB250, any person can bring a lawsuit against a Nevada pharmacy, health provider or other business, if that person believes the business charged them more for a drug than the government-negotiated price. This new legal threat will subject Nevada businesses to potential frivolous lawsuits. This potential for new lawsuits will raise costs for business and jeopardize access to care in communities where it is already difficult to find help.