In January, Maryland Senate Bill 306 was introduced, proposing a workers' comp pharmaceutical fee schedule. On February 25th, the Maryland Senate Finance Committee held a hearing for the bill.
According to the bill, the fee schedule would be based on a drug's actual acquisition cost, plus a dispensing fee, replacing the current usual and customary charges, which is unregulated. The bill allows the Workers’ Compensation Commission to determine appropriate rates, with potential amendments for network contracting and a separate study on physician-dispensed drugs.
Senator Pam Beidle, the bill's supporter, presented data showing the financial burden on self-insured counties and small businesses, emphasizing that the bill would control costs without limiting pharmacy benefits for injured workers. Although the bill does not set a fee schedule for physician-dispensed medications, amendments are being considered to authorize a study by the Maryland Prescription Drug Authority on this issue.
Supporters at the hearing highlighted cost savings and pricing consistency, while some raised concerns that limiting reimbursements to actual acquisition cost (AAC) may not cover administrative expenses.
Opponents argued that the WCC already has authority to set a fee schedule and cautioned that an AAC-based model could restrict access, urging further study. Furthermore, opponents cited concerns about the potential impact on injured workers' access to pharmacy services and the administrative burden of implementing the fee schedule.
The hearing concluded with discussions on amendments to ensure payers can continue contracting for services at rates established through their pharmacy networks. Healthesystems has been actively engaged with the bill sponsor to provide support during the legislative process and will continue to report on the bill's progress and future developments in controlling drug costs in Maryland's workers' comp system.