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PDAB Frequently asked questions (FAQs)

​​The Prescription Drug Affordability Board (Board) consists of five members and three alternates appointed by the governor. The Board was created by Senate Bill 844 during the 2021 regular session and is viewable here.​​

​The Board was established to protect residents of Oregon, state and local governments, commercial health plans, health care providers, pharmacies licensed in Oregon, and other stakeholders within the Oregon health care system from the high costs of prescription drugs.​​

​The Board will meet at least every six weeks. The Board’s first meeting is scheduled for June 23, 2022, at 9:30 am. Notice of meetings and other information will be posted on this website. To receive notice of the Board meetings, please sign up here.​

Here are some additional meeting details:
​The following Board actions will be open to the public.

  • Deliberation on whether to conduct an affordability review of a prescription drug;
  • Any decision or deliberation toward a decision on any matter except discussion of trade secret information, which shall occur in executive session;
  • Opportunity for public comment will be afforded and the public can submit written comments on any pending Board decisions;
  • The Board may allow expert testimony at Board meetings, including when the Board meets in executive session;
  • A Board member shall recuse themselves from decisions relating to a prescription drug if the member or their immediate family has received a financial benefit deriving from the result or finding of a study, review or determination by or for the Board;
  • Any real or perceived conflicts of interest shall be declared by the member. ​

​​The Board will study of the entire prescription drug distribution and payment system in Oregon and polices adopted by other states and countries that are designed to lower the list price of prescription drugs including:

  • Establishing upper payment limits for all financial transactions in Oregon involving a drug and specifying the methodology used to determine the upper payment limit.
  • Using a reverse auction marketplace for the purchase of prescription drugs by state and local governments.
  • Implementing a bulk purchasing process for state and local governments to purchase prescription drugs.

Based on information provided to the board by the Drug Pricing Transparency (DPT) program, it will identify nine drugs and at least one insulin product that it determines may create affordability challenges for health care systems or high out-of-pocket costs for patients in this state based on criteria adopted by the Board.

This criteria will include, at a minimum:

  • Whether the prescription drug has led to health inequities in communities of color;
  • The number of residents in Oregon prescribed the prescription drug;
  • The price for the prescription drug sold in Oregon;
  • The estimated average monetary price concession, discount or rebate the manufacturer provides to health insurance plans in Oregon or is expected to provide to health insurance plans in Oregon, expressed as a percentage of the price for the prescription drug under review;
  • The estimated total amount of the price concession, discount, or rebate the manufacturer provides to each pharmacy benefit manager registered in Oregon for the prescription drug under review, expressed as a percentage of the prices;
  • The estimated price for therapeutic alternatives to the drug that are sold in Oregon;
  • The estimated average price concession, discount, or rebate the manufacturer provides or is expected to provide to health insurance plans and pharmacy benefit managers in Oregon for therapeutic alternatives;
  • The estimated costs to health insurance plans based on patient use of the drug consistent with the labeling approved by the U.S. Food and Drug Administration and recognized standard medical practice;
  • The impact on patient access to the drug considering standard prescription drug benefit designs in health insurance plans offered in Oregon;
  • The relative financial impacts to health, medical, or social services costs as can be quantified and compared to the costs of existing therapeutic alternatives;
  • The estimated average patient copayment or other cost-sharing for the prescription drug in Oregon;
  • Any information a manufacturer chooses to provide;
  • Any other factors as determined by the Board or in rules adopted by the Board.​​

An upper payment limit (sometimes referred to as UPL) is a limit on what purchasers within the state of Oregon will pay for specific drugs identified by the Board; it will not take away the power of payers and drug manufacturers to negotiate below the limit or for drugs outside the Board's purview.​​​

Yes, the Board will create annual reports.

One report is to the Health Care Cost Growth Target program at the Oregon Health Authority and the Oregon Legislature, which includes:

  • Price trends for the list of prescription drugs provided to the Board;
  • The prescription drugs that were reviewed;
  • Recommendations to the legislature on changes necessary to make prescription drugs more affordable in Oregon.

The Board will also produce an annual study of the generic drug marketplace in the U.S. for drugs dispensed by pharmacists and drugs administered by physicians including:

  • Generic drug prices on a year-to-year basis;
  • The degree to which generic drug prices affect insurance premiums;
  • Annual changes in health insurance cost-sharing for generic drugs;
  • The potential for and history of generic drug shortages;
  • The degree to which generic drug prices affect annual spending in the state medical assistance program;
  • Any other topic the Board considers relevant to the cost of generic drugs.​
  • Sign up to receive notices of meetings and activities involving the Board here​.
  • Request to be a participant in Board rulemaking process. ​