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HB 88

Health Insurance – Bulk Purchasing Pools for Prescription Drugs

2026 Regular Session Introduced by Deni Taveras

Maryland bill authorizing health insurers to form bulk purchasing pools for collective prescription drug price negotiation to reduce costs.

Hearing 2/05 at 1:45 p.m.
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Bill Summary · HB 88

Legislative bill overview

HB 88 would authorize Maryland to establish bulk purchasing pools that allow health insurers and potentially other entities to collectively negotiate prescription drug prices with pharmaceutical manufacturers. The bill aims to leverage combined purchasing power to reduce drug costs for consumers and insurers across the state.

Why is this important

Prescription drug costs represent a significant burden for Maryland residents and insurers, often driving up premiums and out-of-pocket expenses. Bulk purchasing arrangements have shown success in other states and countries, potentially lowering drug prices without requiring price controls or restricting market access to medications.

Potential points of contention

  • Pharmaceutical industry opposition: Manufacturers may argue that collective bargaining undermines profit incentives for drug development and research investments
  • Antitrust concerns: Questions about whether group purchasing pools raise legal issues under federal antitrust law or require federal approval
  • Implementation complexity: Determining which drugs qualify, how pools are structured, which entities can participate, and how negotiations occur could be administratively challenging
  • Market fragmentation: Small insurers or self-insured employers might face barriers to participation or could be excluded, creating equity questions
  • Federal preemption: Uncertainty about state authority given federal regulation of pharmaceuticals and potential conflicts with Medicare/Medicaid pricing rules

Compiled from official sources — confirm details with the bill’s official record.

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