In 2020 the Legislature established the Total Cost of Insulin Work Group (Work Group) to review and design strategies to reduce the cost of—and total expenditures on—insulin in the state. The Work Group consists of the insurance commissioner and a representative appointed by the Governor from each of the following organizations:
The Work Group was required to submit a preliminary report to the Governor and Legislature by December 1, 2020, and to submit a final report to the Governor and Legislature by July 1, 2021. The Work Group expires on December 1, 2022.
On July 1, 2021, the HCA submitted a report to the Legislature stating that the Work Group was unable to convene before funding for the Work Group lapsed on June 30, 2021.
Modifications are made to the membership of the Total Cost of Insulin Work Group (Work Group). Members representing the following entities are removed from the Work Group: an association representing chain pharmacies; each health carrier offering at least one health plan in a commercial market in the state; and each health carrier offering at least one health plan to state or public school employees in the state. The representative from a pharmacy benefit manager that contracts with state purchasers is replaced with a representative from an association representing pharmacy benefit managers. Four members of the public living with diabetes who are appointed by the Governor are added to the Work Group membership.
The Work Group must submit a preliminary report detailing strategies to reduce the cost of insulin by December 1, 2022. The Work Group must submit the final report to the Governor and Legislature by July 1, 2023. The Work Group expires on December 1, 2024.
If funding for the Work Group is not provided by June 30, 2022, this act is null and void.
(In support) Insulin is the most expensive drug on the market, so individuals that depend on insulin often compromise on groceries and other necessities to afford their prescription. People are dying because of the cost of insulin, and BIPOC individuals and seniors are among the most impacted.
The Total Cost of Insulin Work Group (Work Group) has the potential to be a life-saving tool. The government can take a role in controlling the cost of insulin by negotiating drug prices and implementing unique programs. For the Work Group to be successful, it must be nimble and efficient enough to meet its deadlines, and it must be representative of the community that consumes insulin. Currently, there are far too many representatives for insurers and health carriers, and too few representatives for consumers of insulin. Amendments will be introduced to reduce the overall number of people in the Work Group, and to ensure that there is a member of the public in the Work Group.
The Work Group has been delayed two years due to the COVID-19 pandemic, which is two more years in which people have struggled to pay for insulin. The Work Group is now prepared to get started.
(Opposed) None.
(In support) The Legislature has passed this policy before. It was voted out of the House of Representatives with a 97 to one vote. This bill simply changes the dates for the Total Cost of Insulin Work Group (Work Group) to review the cost of insulin and understand the approximately 500 percent cost increase in the last decade. Instead of the work ending in 2022, deadlines are extended to 2023.
The Work Group is unnecessarily large. An amendment is needed to reduce the size. The bill allows for a representative from each health carrier offering a health plan in a commercial or public market to participate. There are dozens of health insurers which makes the Work Group too big. However, representatives from the public living with diabetes need to be included.
(Opposed) None.