SB 131 – Disclosures Related to Prescription Drugs
Authored by Sen. Mike Bohacek (R-Michigan City)
Beginning January 1, 2022, requires: (1) a state employee health plan, a policy of accident and sickness insurance, and a health maintenance organization contract to provide to a covered individual the wholesale acquisition cost of a prescription drug not later than 60 days after the prescription drug is dispensed or administered to the covered individual; and (2) a state employee health plan, a policy of accident and sickness insurance, and a health maintenance organization contract to provide a covered individual with the amount of the rebate received by the health plan for a prescription drug dispensed for the covered individual if the amount of the rebate exceeds 15% of the wholesale acquisition cost of the prescription drug.
Chamber position: Oppose
The latest: Insurance and Financial Institutions Committee Chairman Andy Zay (R-Huntington) allowed testimony on the bill but took no vote.
Indiana Chamber action/commentary: The bill requires written notifications, which could cost millions of dollars because there are millions of prescriptions. The Chamber made no comments related to the merits of the bill. Our concerns are related to the administrative costs associated with the notification requirements of the bill. Those administrative costs are passed along to the small group plans to which employers pay the bulk of those premiums. The Legislative Services Agency’s fiscal report demonstrates that small units of government non-ERISA plans will be impacted. The Chamber pointed out that this will be the case for small employer fully insured plans as well. The Chamber and Anthem have been asked to participate in discussions to make the bill better.
Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com
