AN ACT RELATING TO FOOD AND DRUGS -- PRESCRIPTION DRUG COST PROTECTION

HB 5860 would prohibit Rhode Island state entities, health insurance plans, and participating ERISA plans from purchasing prescription drugs above a federally set "maximum fair price" (based on U.S. Department of Health and Human Services rates). The law requires these entities to use any savings from this price cap to directly reduce costs for consumers, with a focus on addressing health equity disparities. Annual reports detailing savings and how they were used to lower consumer costs must be submitted to the state insurance commissioner. This bill affects all state-funded health programs, private health insurers, and employer-sponsored health plans that choose to participate.