Colorado Sets First-in-Nation Limit on Amgen’s Cholesterol Drug Price
DENVER – Colorado’s Insurance Commissioner today announced a groundbreaking decision to cap payments for Amgen’s Repatha, a PCSK9 inhibitor used to lower cholesterol, at $600 per unit for state residents covered by health insurance. This marks the first time a state has directly regulated the price of a pharmaceutical drug in this manner, possibly paving the way for similar measures nationwide.
The move aims to significantly reduce healthcare costs for Coloradans while ensuring access to a vital medication.Currently, the average insurance plan in Colorado pays roughly $53,000 annually per person for prescription drugs, a figure the state hopes to bring down through innovative cost-control measures.The $600 limit, mirroring the maximum fair price set to take effect in the Medicare program in January, translates to approximately $30,350 per person annually – a considerable reduction from current costs.
Colorado’s decision stems from a state law passed in 2021 granting the Commissioner the authority to set upper payment limits on prescription drugs deemed to have high costs and limited competition. A state claims database revealed Repatha as a prime candidate, prompting a thorough review and ultimately, today’s landmark ruling.
“This is a important step towards making prescription drugs more affordable for Coloradans,” said Insurance Commissioner Marcy Morrison in a press statement. “We are committed to using every tool at our disposal to lower healthcare costs and ensure that everyone has access to the medications they need.”
The capped payment rate will apply to health insurance plans regulated by the state, impacting a large portion of Colorado’s population. Amgen has not yet publicly commented on the decision, but industry analysts anticipate legal challenges. The outcome of this initiative could have far-reaching implications for drug pricing and access across the united States, as other states grapple with similar concerns about escalating healthcare expenses.
