SB 325 – Hospitals; authored by Sen. Justin Busch (R-Fort Wayne)
HB 1468 – Various Health Matters; authored by Rep. Steve Davisson (R-Salem)
Chamber position: Neutral
The latest: On second reading, an amendment was added by Rep. Ed Clere (R-New Albany) to SB 325 that addressed a contested issue between hospitals and insurance carriers. The issue is being referenced as “white bagging” – the practice of requiring hospitals to buy drugs from an outside pharmacy, which delivers them ahead of time. It’s a derivation of “brown bagging,” the old practice of requiring patients to have drugs shipped to their homes and carry them to the hospital for use. Brown bagging is a practice no longer in use.
This issue arose after Anthem of Indiana implemented a new policy effective April 1. The policy required hospitals/facilities to either join a designated network for select specialty pharmacy medications and receive the contractual rates (lower than the average mark-up of 250%) or purchase them from CVS Specialty Pharmacy. Hospitals contend that the practice is disruptive to patient care and safety.
Representative Clere’s amendment would have made the State Department of Health the arbitrator of any disagreements between hospitals and insurance carriers. The language passed on a voice vote and the bill passed the House 93-0. However, during conference committee for SB 325, the “white bagging” language was removed. Representative Ethan Manning (R-Logansport) referred to the discussions on this issue in HB 1468 (Various Health Matters) and said if anything would be accomplished on the matter, it would be there.
During the conference committee on HB 1468, testimony was given by the provider community and the insurance industry. The committee recessed with no indication as to what the conference committee report will look like and if anything on “white bagging” would be included. Some in the hallway think that nothing will come of this debate.
Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com
