Measure to cap drug prices in SD removed from ballot

Initiated Measure (IM) 26, which would have capped drug prices in South Dakota, was removed from the November 2018 ballot by Circuit Judge Patricia DeVaney who determined the measure’s supporters had improperly circulated petitions which led to some signatures being disqualified and ultimately not enough signatures necessary to qualify it for the ballot.

IM 26 would have required the state and state agencies to pay the same or lower prices for prescription drugs as the U.S. Department of Veterans Affairs (VA) – a department that negotiates drug prices with companies and typically receives a 24 percent discount for prescription drugs. Specifically, it would forbid state agencies from entering into any purchasing agreement with drug manufacturers unless the net cost of the drug was the same or less than that paid by the VA. The measure would apply in any case in which the state ultimately provided funding for the purchase of drugs, even if the drugs were not purchased directly by a government agency.