House Bill 1307 – Health Care Service Cost Sharing
Authored by Rep. Ron Bacon (R-Chandler)

Requires a state employee health plan, a policy of accident and sickness insurance, and a contract with a health maintenance organization to provide coverage for treatment of ectodermal dysplasia.

Chamber Position: Oppose

The Latest: Representative Martin Carbaugh (R-Fort Wayne), House Insurance Committee chairman, held the bill and did not take a vote on it or any amendments. The Chamber expects the bill to be dead for the rest of the session

Chamber Action/Commentary: The bill would allow for a manufacturer’s drug coupon to be used toward a patient’s insurance plan deductible. The National Hemophilia Foundation, PHARMA, the American Cancer Society and Little Red Door Cancer Agency all favored the bill. Care Source, Anthem, the Indiana Chamber and the Indiana Association of Health Plans opposed the bill.

The carriers testified that this increases cost to the plan and causes the patient to stay on a more expensive drug. The Chamber testified that we have a standing position to oppose mandates on health insurance plans. Further, this bill impacts the state health plan financially (state budget), policy of accident and sickness (which includes individual and group market) and health maintenance organizations. Additionally, a full 80% of the market isn’t even covered by the bill. An amendment was also introduced to exempt the state health plan.

The fiscal impact reveals three options because of the significant cost to the state: 1) greater employee cost share; 2) reduction in benefits or elimination; or 3) lowering of wages. The same impacts to the state plan in the introduced version would apply to employers with the most likely result a cost-shifting to employees. So, the bill would actually be driving up the co-pays and cost shares on the people who you are attempting to help!

Resource: Mike Ripley at (317) 264-6883 or e-mail: [email protected]