On June 12, Nevada Governor Joe Lombardo vetoed Assembly Bill 259, legislation that would have imposed Medicare’s maximum fair price (MFP) reimbursement caps on certain prescription drugs in the state.
While AB 259 aimed to control drug costs, its approach may have unintended consequences. These reimbursement caps, similar to upper payment limits (UPLs), lack any requirement to ensure that cost savings are passed on to patients. Additionally, such caps can incentivize insurers to restrict access by removing medications from formularies or placing them on higher cost-sharing tiers.
In his veto letter, Governor Lombardo noted that the implementation of MFP pricing in Nevada could backfire, stating, “Unfortunately, the data shows it would drive up—not lower—costs… Finally, by requiring MFP pricing in Nevada, AB 259 could unintentionally restrict patient access to medications. If a pharmacy or provider cannot acquire a drug at or below the MFP, that drug simply won’t be available to Nevadans.”
Aimed Alliance applauds Governor Lombardo for listening to the voices of patients and advocates and for rejecting a bill that may have hindered access to treatments. Read Governor Lombardo’s veto letter.
Last Updated on June 25, 2025 by Aimed Alliance
