An Act establishing a commission to study the promotion of preferred pharmacy networks

194th Legislature (2025-2026) Introduced by Paul Frost and 3 co-sponsors

Establishes a 12-month commission to study the feasibility, costs, and potential savings of preferred pharmacy networks, with a final report to lawmakers.

Overview

This proposed Massachusetts bill would create a formal commission to study the feasibility and potential impact of “preferred pharmacy networks,” whereby health insurers steer consumers to lower-cost pharmacies in exchange for reduced prescription drug prices. The study would assess costs, benefits, and projected savings, and may include drafted legislation based on its findings. A final report and recommendations would be due within 12 months of the act’s passage.

Key Provisions

Establishment of a Commission: Notwithstanding other laws, a commission would study the implementation of preferred pharmacy networks and associated cost savings.

Composition: The commission would include:

Co-chairs: House and Senate chairs of the Joint Committee on Health Care Financing
Members appointed by: Speaker of the House, President of the Senate, House minority leader, Senate minority leader
Designees from: Director of the Health Policy Commission; Commissioner of the Department of Public Health; Executive Director of the Center for Health Information and Analysis

Purpose and Analysis: The commission would:

Study feasibility and design of preferred pharmacy networks
Conduct a cost-benefit analysis of such networks
Provide estimates of projected prescription drug cost savings

Deliverables: A report with findings, recommendations, and any drafted legislation

Timing: The commission must submit its report within 12 months of the act’s passage

Reporting Recipients: The report and recommendations would be transmitted to the House and Senate committees on Ways and Means, the Joint Committee on Health Care Financing, and the clerks of the House and Senate

Who Is Affected

Health Insurers and Pharmacy Networks: Potentially affected through policy exploration of steering patients to lower-cost, “preferred” pharmacies.

Pharmacies (including “preferred” networks): Could experience changes in parity of access or demand, depending on network configurations studied.

Consumers/Patients: Potential impact on out-of-pocket costs if preferred networks are implemented.

State Agencies and Officials: Involvement of the Health Policy Commission, Department of Public Health, and the Center for Health Information and Analysis in evaluating and advising on the study.

Procedural and Timeline Details

Status: Proposed bill; introduced/Filed in earlier sessions and listed as HD 2249 with a 2025-2026 General Court context.

Deadline for Report: 12 months after passage.

Location of Review: The study would inform House and Senate Ways and Means, the Joint Committee on Health Care Financing, and legislative clerks.

Notes

A similar measure was previously filed in the 2023-2024 session (House No. 1053), indicating ongoing interest in evaluating preferred pharmacy networks.

The bill does not itself mandate the creation of preferred networks or authorize immediate changes to existing system pricing; it directs the formation of a commission to study feasibility, costs, and potential savings.

Bill