June 6, 2025

The Honorable Joe Lombardo
Governor of the State of Nevada
Nevada State Capitol Building
101 North Carson Street
Carson City, Nevada 89701

Dear Governor Lombardo,

On behalf of the more than 2,472 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in the state of Nevada, I urge you to veto AB 259.  It is similar to legislation you vetoed during the 2023 legislative session.

Throughout history, price controls have distorted markets, hurt innovation, and exacerbated the problems they were created to fix.  AB 259 would require commercial insurance plans and pharmacies to cap the amount they pay for prescription medicines at a reference price and allow the state to set prices at the Maximum Fair Price (MFP).  Setting prices at the MFP could restrict access to vital medicines.  According to a January 2025 report by the National Community Pharmacists Association, 32.8 percent of independent pharmacists “have already decided not to stock one or more of the drugs listed in the Medicare Drug Price Negotiation” and 60.4 percent of independent pharmacies are considering following suit. 

Requiring commercial insurance plans and pharmacies to cap the amount they pay for prescription drugs is a price control that would further distort the medical marketplace and further expand government control of the Nevada healthcare system.  If enacted, AB 259 would fail to reduce prices and harm patients by stifling the development of new treatments and cures.

A permanent market-based solution, not government intrusion, will lower prices.  For these reasons, I urge you to veto AB 259.

Sincerely,

Tom Schatz 
President, CCAGW