If the board determines that a prescription drug will lead to an affordability
challenge, the bill directs the board to establish an upper payment limit for that drug
that applies to all purchases and payor reimbursements of the drug dispensed or
administered to individuals in Wisconsin. In establishing the upper payment limit,
the board must consider the cost of administering the drug, the cost of delivering it
to consumers, and other relevant administrative costs. For certain drugs, the board
must solicit information from the manufacturer regarding the price increase and, if

the board determines that the price increase is not a result of the need for increased
manufacturing capacity or other effort to improve patient access during a public
health emergency, the board must establish an upper payment limit equal to the
drug's cost prior to the price increase.
Further, this bill provides $500,000 in program revenue in fiscal year 2023-24
for onetime implementation costs associated with establishing an Office of
Prescription Drug Affordability in the Office of the Commissioner of Insurance. The
bill provides that the Office of Prescription Drug Affordability is responsible for
prescription drug affordability programming within OCI and for overseeing the
operations of the Prescription Drug Affordability Review Board. Additionally, the
bill authorizes and funds for the fiscal biennium 16.0 positions for the Office of
Prescription Drug Affordability.
Finally, the bill credits to the appropriation account for OCI's general program
operations all moneys received from the regulation of pharmacy benefit managers,
pharmacy benefit management brokers, pharmacy benefit management
consultants, pharmacy services administration organizations, and pharmaceutical
sales representatives.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB747,1 1Section 1 . 15.07 (3) (bm) 7. of the statutes is created to read:
AB747,3,32 15.07 (3) (bm) 7. The prescription drug affordability review board shall meet
3at least 4 times each year.
AB747,2 4Section 2 . 15.735 of the statutes is created to read:
AB747,3,7 515.735 Same; attached board. (1) There is created a prescription drug
6affordability review board attached to the office of the commissioner of insurance
7under s. 15.03. The board shall consist of the following members:
AB747,3,88 (a) The commissioner of insurance or his or her designee.
AB747,3,129 (b) Two members appointed for 4-year terms who represent the
10pharmaceutical drug industry, including pharmaceutical drug manufacturers and
11wholesalers. At least one of the members appointed under this paragraph shall be
12a licensed pharmacist.
AB747,4,2
1(c) Two members appointed for 4-year terms who represent the health
2insurance industry, including insurers and pharmacy benefit managers.
AB747,4,53 (d) Two members appointed for 4-year terms who represent the health care
4industry, including hospitals, physicians, pharmacies, and pharmacists. At least one
5of the members appointed under this paragraph shall be a licensed practitioner.
AB747,4,76 (e) Two members appointed for 4-year terms who represent the interests of the
7public.
AB747,4,10 8(2) A member appointed under sub. (1), except for a member appointed under
9sub. (1) (b), may not be an employee of, a board member of, or a consultant to a drug
10manufacturer or trade association for drug manufacturers.
AB747,4,15 11(3) Any conflict of interest, including any financial or personal association, that
12has the potential to bias or has the appearance of biasing an individual's decision in
13matters related to the board or the conduct of the board's activities shall be
14considered and disclosed when appointing that individual to the board under sub.
15(1).
AB747,3 16Section 3 . 20.145 (1) (g) 4. of the statutes is created to read:
AB747,4,2017 20.145 (1) (g) 4. All moneys received from the regulation of pharmacy benefit
18managers, pharmacy benefit management brokers, pharmacy benefit management
19consultants, pharmacy services administration organizations, and pharmaceutical
20sales representatives.
AB747,4 21Section 4 . Subchapter VI of chapter 601 [precedes 601.78] of the statutes is
22created to read:
AB747,4,2323 CHAPTER 601
AB747,4,2524 SUBCHAPTER VI
25 Prescription drug
AB747,5,1
1affordability review board
AB747,5,2 2601.78 Definitions. In this subchapter:
AB747,5,4 3(1) “Biologic” means a drug that is produced or distributed in accordance with
4a biologics license application approved under 21 CFR 601.20.
AB747,5,6 5(2) “Biosimilar” means a drug that is produced or distributed in accordance
6with a biologics license application approved under 42 USC 262 (k) (3).
AB747,5,8 7(3) “Board” means the prescription drug affordability review board established
8under s. 15.735 (1).
AB747,5,11 9(4) “Brand name drug” means a drug that is produced or distributed in
10accordance with an original new drug application approved under 21 USC 355 (c),
11other than an authorized generic drug, as defined in 42 CFR 447.502.
AB747,5,14 12(5) “Financial benefit” includes an honorarium, fee, stock, the value of the stock
13holdings of a member of the board or any immediate family member, and any direct
14financial benefit deriving from the finding of a review conducted under s. 601.79.
AB747,5,15 15(6) “Generic drug” means any of the following:
AB747,5,1716 (a) A retail drug that is marketed or distributed in accordance with an
17abbreviated new drug application approved under 21 USC 355 (j).
AB747,5,1818(b) An authorized generic drug, as defined in 42 CFR 447.502.
AB747,5,2019 (c) A drug that entered the market prior to 1962 and was not originally
20marketed under a new drug application.
AB747,5,23 21(7) “Immediate family member” means a spouse, grandparent, parent, sibling,
22child, stepchild, or grandchild or the spouse of a grandparent, parent, sibling, child,
23stepchild, or grandchild.
AB747,5,24 24(8) “Manufacturer” means an entity that does all of the following:
AB747,6,3
1(a) Engages in the manufacture of a prescription drug product or enters into
2a lease with another manufacturer to market and distribute a prescription drug
3product under the entity's own name.
AB747,6,54 (b) Sets or changes the wholesale acquisition cost of the prescription drug
5product described in par. (a).
AB747,6,6 6(9) “Pharmacy benefit manager” has the meaning given in s. 632.865 (1) (c).
AB747,6,8 7(10) “Prescription drug product” means a brand name drug, a generic drug, a
8biologic, or a biosimilar.
AB747,6,13 9601.785 Prescription drug affordability review board. (1) Mission. The
10purpose of the board is to protect state residents, the state, local governments, health
11plans, health care providers, pharmacies licensed in this state, and other
12stakeholders of the health care system in this state from the high costs of prescription
13drug products.
AB747,6,14 14(2) Powers and duties. (a) The board shall do all of the following:
AB747,6,1715 1. Meet in open session at least 4 times per year to review prescription drug
16product pricing information, except that the chair may cancel or postpone a meeting
17if there is no business to transact.
AB747,6,1918 2. To the extent practicable, access and assess pricing information for
19prescription drug products by doing all of the following:
AB747,6,2220 a. Accessing and assessing information from other states by entering into
21memoranda of understanding with other states to which manufacturers report
22pricing information.
AB747,6,2323 b. Assessing spending for specific prescription drug products in this state.
AB747,6,2424 c. Accessing other available pricing information.
AB747,6,2525 (b) The board may do any of the following:
AB747,7,1
11. Promulgate rules for the administration of this subchapter.
AB747,7,62 2. Enter into a contract with an independent 3rd party for any service
3necessary to carry out the powers and duties of the board. Unless written permission
4is granted by the board, any person with whom the board contracts may not release,
5publish, or otherwise use any information to which the person has access under the
6contract.
AB747,7,97 (c) The board shall establish and maintain a website to provide public notices
8and make meeting materials available under sub. (3) (a) and to disclose conflicts of
9interest under sub. (4) (d).
AB747,7,13 10(3) Meeting requirements. (a) Pursuant to s. 19.84, the board shall provide
11public notice of each board meeting at least 2 weeks prior to the meeting and shall
12make the materials for each meeting publicly available at least one week prior to the
13meeting.
AB747,7,1614 (b) Notwithstanding s. 19.84 (2), the board shall provide an opportunity for
15public comment at each open meeting and shall provide the public with the
16opportunity to provide written comments on pending decisions of the board.
AB747,7,1917 (c) Notwithstanding subch. V of ch. 19, any portion of a meeting of the board
18concerning proprietary data and information shall be conducted in closed session
19and shall in all respects remain confidential.
AB747,7,2120 (d) The board may allow expert testimony at any meeting, including when the
21board meets in closed session.
AB747,7,25 22(4) Conflicts of interest. (a) A member of the board shall recuse himself or
23herself from a decision by the board relating to a prescription drug product if the
24member or an immediate family member has received or could receive any of the
25following:
AB747,8,2
11. A direct financial benefit deriving from a determination, or a finding of a
2study or review, by the board relating to the prescription drug product.
AB747,8,53 2. A financial benefit in excess of $5,000 in a calendar year from any person who
4owns, manufactures, or provides a prescription drug product to be studied or
5reviewed by the board.
AB747,8,96 (b) A conflict of interest under this subsection shall be disclosed by the board
7when hiring board staff, by the appointing authority when appointing members to
8the board, and by the board when a member of the board is recused from any decision
9relating to a review of a prescription drug product.
AB747,8,1310 (c) A conflict of interest under this subsection shall be disclosed no later than
115 days after the conflict is identified, except that, if the conflict is identified within
125 days of an open meeting of the board, the conflict shall be disclosed prior to the
13meeting.
AB747,8,1714 (d) The board shall disclose a conflict of interest under this subsection on the
15board's website unless the chair of the board recuses the member from a final
16decision relating to a review of the prescription drug product. The disclosure shall
17include the type, nature, and magnitude of the interests of the member involved.
AB747,8,2018 (e) A member of the board or a 3rd-party contractor may not accept any gift or
19donation of services or property that indicates a potential conflict of interest or has
20the appearance of biasing the work of the board.
AB747,8,22 21601.79 Drug cost affordability review. (1) Identification of drugs. The
22board shall identify prescription drug products that are any of the following:
AB747,9,223 (a) A brand name drug or biologic that, as adjusted annually to reflect
24adjustments to the U.S. consumer price index for all urban consumers, U.S. city

1average, as determined by the U.S. department of labor, has a launch wholesale
2acquisition cost of at least $30,000 per year or course of treatment.
AB747,9,63 (b) A brand name drug or biologic that, as adjusted annually to reflect
4adjustments to the U.S. consumer price index for all urban consumers, U.S. city
5average, as determined by the U.S. department of labor, has a wholesale acquisition
6cost that has increased at least $3,000 during a 12-month period.
AB747,9,97 (c) A biosimilar that has a launch wholesale acquisition cost that is not at least
815 percent lower than the referenced brand biologic at the time the biosimilar is
9launched.
AB747,9,1310 (d) A generic drug that has a wholesale acquisition cost, as adjusted annually
11to reflect adjustments to the U.S. consumer price index for all urban consumers, U.S.
12city average, as determined by the U.S. department of labor, that meets all of the
13following conditions:
AB747,9,1914 1. Is at least $100 for a supply lasting a patient for a period of 30 consecutive
15days based on the recommended dosage approved for labeling by the federal food and
16drug administration, a supply lasting a patient for a period of fewer than 30 days
17based on the recommended dosage approved for labeling by the federal food and drug
18administration, or one unit of the drug if the labeling approved by the federal food
19and drug administration does not recommend a finite dosage.
AB747,9,2220 2. Increased by at least 200 percent during the preceding 12-month period, as
21determined by the difference between the resulting wholesale acquisition cost and
22the average of the wholesale acquisition cost reported over the preceding 12 months.
AB747,9,2523 (e) Other prescription drug products, including drugs to address public health
24emergencies, that may create affordability challenges for the health care system and
25patients in this state.
AB747,10,5
1(2) Affordability review. (a) After identifying prescription drug products
2under sub. (1), the board shall determine whether to conduct an affordability review
3for each identified prescription drug product by seeking stakeholder input about the
4prescription drug product and considering the average patient cost share of the
5prescription drug product.
AB747,10,116 (b) The information used to conduct an affordability review under par. (a) may
7include any document and research related to the manufacturer's selection of the
8introductory price or price increase of the prescription drug product, including life
9cycle management, net average price in this state, market competition and context,
10projected revenue, and the estimated value or cost-effectiveness of the prescription
11drug product.
AB747,10,1412 (c) The failure of a manufacturer to provide the board with information for an
13affordability review under par. (b) does not affect the authority of the board to
14conduct the review.
AB747,10,22 15(3) Affordability challenge. When conducting an affordability review of a
16prescription drug product under sub. (2), the board shall determine whether use of
17the prescription drug product that is fully consistent with the labeling approved by
18the federal food and drug administration or standard medical practice has led or will
19lead to an affordability challenge for the health care system in this state, including
20high out-of-pocket costs for patients. To the extent practicable, in determining
21whether a prescription drug product has led or will lead to an affordability challenge,
22the board shall consider all of the following factors:
AB747,10,2423 (a) The wholesale acquisition cost for the prescription drug product sold in this
24state.
AB747,11,4
1(b) The average monetary price concession, discount, or rebate the
2manufacturer provides, or is expected to provide, to health plans in this state as
3reported by manufacturers and health plans, expressed as a percent of the wholesale
4acquisition cost for the prescription drug product under review.
AB747,11,85 (c) The total amount of the price concessions, discounts, and rebates the
6manufacturer provides to each pharmacy benefit manager for the prescription drug
7product under review, as reported by the manufacturer and pharmacy benefit
8manager and expressed as a percent of the wholesale acquisition cost.
AB747,11,109 (d) The price at which therapeutic alternatives to the prescription drug product
10have been sold in this state.
AB747,11,1311 (e) The average monetary concession, discount, or rebate the manufacturer
12provides or is expected to provide to health plan payors and pharmacy benefit
13managers in this state for therapeutic alternatives to the prescription drug product.
AB747,11,1614 (f) The costs to health plans based on patient access consistent with labeled
15indications by the federal food and drug administration and recognized standard
16medical practice.
AB747,11,1817 (g) The impact on patient access resulting from the cost of the prescription drug
18product relative to insurance benefit design.
AB747,11,2019 (h) The current or expected dollar value of drug-specific patient access
20programs that are supported by the manufacturer.
AB747,11,2321 (i) The relative financial impacts to health, medical, or social services costs that
22can be quantified and compared to baseline effects of existing therapeutic
23alternatives to the prescription drug product.
AB747,11,2524 (j) The average patient copay or other cost sharing for the prescription drug
25product in this state.
AB747,12,1
1(k) Any information a manufacturer chooses to provide.
AB747,12,22 (L) Any other factors as determined by the board by rule.
AB747,12,6 3(4) Upper payment limit. (a) If the board determines under sub. (3) that use
4of a prescription drug product has led or will lead to an affordability challenge, the
5board shall establish an upper payment limit for the prescription drug product after
6considering all of the following:
AB747,12,77 1. The cost of administering the drug.
AB747,12,88 2. The cost of delivering the drug to consumers.
AB747,12,99 3. Other relevant administrative costs related to the drug.
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