The Maryland Prescription Drug Affordability Board voted Monday to move forward with setting upper payment limits on the diabetes drug Jardiance, putting into motion the mechanics to put the first state regulations on a drug since the panel’s inception.

With the vote, the limit will now move to a 30-day public comment period before getting a final vote and becoming policy. The limit will impact state and local government health plans starting 2027, effectively setting a ceiling on what the state says it will pay for the drug. The rule will save about $320,000 a year.

In 2028, the drug will be eligible for limits on all insurance plans in Maryland, potentially saving customers millions of dollars in total.

The limit is determined as the maximum fair price, which is a negotiated reimbursement rate for high-cost Medicare drugs.

Vincent DeMarco, president of Maryland Healthcare for All!, says the vote is the culmination of years of work.

“The important thing is that when they see a drug like Jardiance, which is causing affordability issues, they will set an upper payment limit and this is a great step forward for Maryland,” DeMarco said.

The board also considered putting limits on Farxiga, but decided against it because the drug would soon be available in generic versions.

The board deemed both drugs unaffordable last summer after extensive study of public and proprietary documents on the drugs and their pricing.