Hatfield attempts to lower prescription drug prices for Hoosiers

Indiana

INDIANAPOLIS, Ind (WEHT) — State Rep. Ryan Hatfield (D-Evansville) offered two amendments this week to Senate Bill 325. The first would have banned the practice of spread pricing by Pharmacy Benefit Managers and the second would have returned rebate savings of certain prescription drugs and lower their costs at the pharmacy.

Hatfield’s first amendment would have eliminated the ability for PBMs to implement spread pricing techniques. Spread pricing occurs when health plans contract with PBMs to manage their prescription drug benefits and PBMs keep a portion of the amount paid to them, which drives up pharmaceutical costs and increases Medicaid costs for taxpayers.

Hatfield’s second amendment would have lowered prescription drug costs for certain consumers. It would have provided that the defined cost sharing for a prescription drug under a health maintenance organization contract must be based on a price that’s reduced by at least 85% of all rebates received by the insurer or HMO in connection with the dispensing of the prescription drug.

Both amendments were voted down by House Republicans.

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