If these assaults on private health insurance and prescription drug coverage succeed, the cost of prescription medications could surge by billions of dollars over the next decade. Ultimately, these increased costs will be shouldered by employers and their employees who hold insurance policies.
Consumers
The majority of Louisiana’s consumers rely on employer-provided health coverage, emphasizing the importance of access to healthcare resources. Employers prioritize the well-being of their workforce by offering benefits that facilitate preventive care, treatment for illnesses, and access to prescribed medications. Affordable health benefits play a pivotal role in supporting individuals’ health and bolstering Louisiana’s economy. Presently, hundreds of thousands of Louisianans benefit from employer-sponsored health insurance, underscoring its significance in the state’s healthcare landscape.
Louisiana’s Employer Self-Funded Plans Are Under Attack
Louisiana’s employer self-funded plans face a new challenge. For nearly five decades, the Employment Retirement Income Security Act (ERISA) has safeguarded these plans from state-level interference, ensuring consistency across state lines and benefiting consumers. However, the 2020 U.S. Supreme Court ruling in Rutledge v. PCMA has disrupted this stability. This decision upheld an Arkansas law that regulates Pharmacy Benefit Managers (PBMs), allowing state-level actions that may impact self-funded plans. Now, lobbyists and independent pharmacists are leveraging this ruling to pursue legislation aimed at increasing their profits. These efforts undermine self-funded plans, weaken PBMs’ ability to negotiate lower drug prices, and ultimately drive up costs for consumers.
Prescription Drug Prices
Once more, lawmakers are deliberating bills supported by special interest groups. These proposed bills aim to expand choice or impose stricter regulations on Pharmacy Benefit Managers (PBMs), supposedly to lower prescription drug costs. However, in reality, these bills serve as special interest maneuvers that negatively impact the budgets of businesses and families in Louisiana, ultimately driving up costs rather than providing relief.