DIRECTING THE STATE EMPLOYEE BENEFITS COMMITTEE AND THE SECRETARY OF HUMAN RESOURCES TO ENGAGE WITH INDEPENDENT CONSULTANTS AND OTHER SUPPLY CHAIN TACTICS FOR COST CONTAINMENT OF PRESCRIPTION DRUGS FOR STATE EMPLOYEES AND RETIREES’ INSURANCE PROGRAMS.

Drug cost review for state workers

Delaware’s State Employee Benefits Committee must consider nine drug-cost strategies for state employee and retiree insurance plans. These include state ownership of drug data, real-time sale prices, and independent experts to review the plan’s covered-drug list. The expert options include pay tied to lower costs and favoring generics when brand-name drugs offer no treatment advantage. Other options include bidding methods that drive prices down, joint purchasing with other states, and direct manufacturer talks for expensive drugs. The committee must also consider paying no more than Medicare-negotiated prices and requiring bids based on each drug’s lowest price source. Transparency options include full disclosure of drug middlemen’s administrative costs, access to their manufacturer agreements, and outside audits. Those agreements can remain confidential when needed. The law requires consideration, not adoption, of these strategies and does not guarantee lower drug costs or premiums. By August 1, 2026, the committee must report implementation difficulties to the Governor, Senate President Pro Tempore, House Speaker, Legislative Services Director and Librarian, and Public Archives.