Maryland Drug Board Caps Price of Diabetes Drug Jardiance, Setting First State Payment Limit

Maryland has taken a direct step to control drug costs, with its Prescription Drug Affordability Board setting an upper payment limit for a widely prescribed diabetes treatment. This marks only the second time a state panel has taken such an action, positioning Maryland at the forefront of a contentious state-level push against pharmaceutical pricing. The board, structured to function like a utility commission, is now tasked with implementing a price cap for the type 2 diabetes medicine Jardiance for state and local governments by January 2027.

The board's decision sets the 30-day supply cost at $204, or $6.80 per pill. This expected cost was benchmarked against the maximum fair price paid by Medicare, with the 2027 figure adjusted for inflation, according to the board's executive director, Andrew York. The move is estimated to save the state approximately $320,000 annually, targeting a specific financial pressure point in public health budgets.

The action signals growing pressure on drug manufacturers from state regulators, not just federal programs. By establishing a concrete price ceiling and a multi-year implementation timeline, Maryland's board creates a precedent other states may follow, potentially reshaping how essential medicines are priced for public entities. The focus on a high-volume diabetes drug underscores the board's strategy of targeting treatments with significant budgetary impact.