State Drug Price Transparency Laws

TKG PACT Executive Briefings - 3-Minute Market Insights

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Since 2016, 13 states have passed Drug Price Transparency Laws focused on enabling state policymakers to understand opaque drug pricing and payment systems to formulate policy solutions to high prices, while also creating the data infrastructure to realize those policy solutions.

Most of these state programs require reporting from manufacturers when they increase the Wholesale Acquisition Cost (WAC) of a drug above a certain threshold or if they introduce a drug with a high launch price.

Since 2020, 8 states have enacted Prescription Drug Affordability Boards often referred to as P-DABs, entities with the authority to review high cost drugs and in some states set an upper payment limit to ensure no one pays more than that amount in the state.
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