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Springfield, MA
Change City

New Massachusetts Law Aims to Curb Rising Drug Costs

Posted on 01/13/25 by Peter Urban

Trips to the pharmacy could get a little cheaper for thousands of Massachusetts residents under a new law aimed at reining in the out-of-pocket costs for prescription medications.

On Jan. 8, Gov. Maura Healey signed into law “An Act Relative to Pharmaceutical Access, Costs, and Transparency," which will cap co-payments at $25 on a 30-day supply of prescription medications for diabetes, asthma and certain heart conditions starting July 1. It will also ensure consumers aren’t charged a co-pay if it’s cheaper to buy the drug without insurance.

Under the new law, pharmacy benefit managers will need to be licensed, and a new state office will be established to analyze and report on pharmaceutical spending in Massachusetts. Increasing transparency and accountability in the prescription drug supply chain should help lower costs for consumers and taxpayers, according to AARP Massachusetts State Director Jen Benson.

"AARP has worked for decades to lower the price people pay for prescription drugs. This legislation does that,” Benson said in a statement. “This prescription drug package will help tens of thousands of older Bay State residents struggling to better afford their medications.”

In a letter sent to state lawmakers in November 2023 urging support for the legislation, AARP Massachusetts noted the importance of ensuring older adults have access to affordable prescription drugs.

"Older Americans use prescription drugs more than any other segment of the U.S. population, and unfortunately many older Americans – particularly Medicare beneficiaries – continue to struggle to afford their prescription medication,” we wrote.

We also noted the need to make the prescription drug payment process more open.

“Right now, it’s a complicated process that includes drug manufacturers, pharmacy benefit managers, wholesalers, insurers, and pharmacies,” we wrote.

Bringing down the cost of prescription drugs in the U.S. is a priority for AARP. In 2022, we were instrumental in helping to pass a historic prescription drug law that is lowering prices and out-of-pocket costs for millions of Medicare beneficiaries. This year, we’ve continued to support and weigh in on many federal and state actions aimed at making medications more affordable for older adults around the country.

Read more about our efforts to lower prescription drug costs and keep up with AARP’s health coverage.

This story is provided by AARP Massachusetts. Visit the AARP Massachusetts page for more news, events, and programs affecting retirement, health care, and more.

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