State Price Transparency Updates – New Mexico Operationalizes Drug Price Transparency Legislation and North Dakota Repeals Theirs!
On April 28, 2025, New Mexico operationalized their state price transparency legislation (HB 33). The provisions were set to go into effect on January 1, 2025 with the first annual reports due on May 1, 2025. However, the Office of Superintendent of Insurance, the department responsible for administering the reporting program, launched their electronic reporting system on April 28, 2025 and extended the first annual deadline to June 1, 2025.
Implications for Manufacturers:
Under this law, manufacturers must submit data for drugs that undergo triggering price increases or launches. The thresholds for qualifying reporting are as follows:
· Branded Drugs: Wholesale acquisition cost (WAC) greater than or equal to $400 and a price increase of more than 10% during the previous calendar year or a price increase of more than 16% during the previous two calendar years
· Generic or Biosimilar Drugs: Wholesale acquisition cost (WAC) greater than $400 and a price increase of more than 30% during the previous calendar year
· Drug Launches:
o Branded drugs with a WAC exceeding the threshold set for a specialty-tier drug under Medicare Part D
o Generic and biosimilar with a WAC exceeding the threshold set for a specialty-tier drug under Medicare Part D, AND with a WAC that is not at least 15% less than the price of the brand name drug or biological product that the generic drug or biosimilar product is based on
For drugs that increase their WAC to trigger the above thresholds, notification of the price increase must be made in writing (in PDF form via email) to Alejandro Amparan no later than the date that the price increase becomes effective. In addition, all triggering price increases must also be reported annually on or before May 1 via the electronic portal. Please note, however, that the 2025 annual report deadline has been extended from May 1, 2025, to June 1, 2025. All new drug reporting is due via the electronic portal within 3 days of introduction.
For 2025 reporting, manufacturers will be expected to fill out their contact information via the portal; however, the state anticipates changing their registration process in the future.
While New Mexico is starting their SPTR program, North Dakota is repealing their SPTR program. On May 16, North Dakota sent a notice to SPTR stakeholders informing them that North Dakota’s latest bill, HB 1584, repealed the SPTR program that was set up under the North Dakota Century Code (NDCC) Chapter 26.1-36.10. The repeal is effective immediately and as a result, manufacturers will no longer need to submit new drug launch or WAC increase reports to the state.
Please reach out to our team @Ritu Pandey and @Patrick Citrano for additional insight and perspective.
Additional information on existing legislation and updates around new legislation can always be found on our free State Drug Pricing App on the App Store (https://lnkd.in/gsFJ7h7) and Google Play (https://lnkd.in/ghdJrNz).