State News

Understanding how prescription drug prices are set will allow both patients and states to make more informed decisions about whether prices are excessive, as well as introduce some rationality and evidence into the healthcare system, according to a new report from the West Virginia Center on Budget and Policy. During the 2020 legislative session, West Virginia passed a drug transparency law requiring manufacturers to report prices, and research and development costs and justify price increases. In addition, all health plan insurers in the state are required to report the 25 most frequently prescribed prescription drugs, the percent increase in annual net spending for prescription drugs, and the percent increase in premiums that were attributable to prescription drugs. Authors note that the state could consider expanding the law to include pharmacy benefit managers and appointing a prescription drug affordability board with the power to regulate drug prices.   

Utah is implementing an insulin cost savings program that will allow every Utahn to purchase insulin at a 60 percent discount through the state Public Employee Health Plan (PEHP), according to KUTV. PEHP will purchase insulin at a higher rate, but Utahns will only have to pay the wholesale cost—about a 60 percent discount. The law also caps health insurance copays for insulin at $30 for a 30-day supply. Additionally, this law enables pharmacists to dispense a 90-day supply of insulin on an emergency basis for patients having difficulties with their prescription.

Oregon legislators have released a new framework, developed by the Office of Diversity, Equity, and Inclusion, to help state agencies increase attention on equity and racial justice in response to the COVID-19 pandemic, according to My Oregon News. COVID has surfaced long-standing health inequities that have caused higher rates of chronic health problems within communities of color compared to white communities. The core elements of the framework include a commitment to: using inclusive communications; forming community-informed policy and partnerships; ensuring safety for communities by protecting against discrimination, racism, xenophobia, violence and hate crimes; collecting, analyzing and reporting data in a culturally- and linguistically-responsive way; and making investments in community resilience

Systems for Action hosted a webinar to present emerging evidence on the use of global budgets and multi-sector teams to align health and social service systems, increase access to needed services, control healthcare costs and create more equitable health outcomes in Vermont. This effort is part of Vermont’s Blueprint for Health initiative, which is among the most ambitious statewide health financing reforms underway in the U.S.

Around 30 percent of physician practices in Massachusetts have been considering closing down, according to a preliminary report by the Massachusetts Health Policy Commission and the Massachusetts Chapter of the American College of Physicians. Medical and procedural specialist groups were the most likely to consider closing their practice at 42 percent, while around 20 percent of primary care and behavioral health physician groups were weighing closure, Modern Healthcare reports.

A coalition of 51 states and territories, led by Connecticut’s attorney general, are suing generic drug companies for price fixing, according to a press release from the attorney general’s office. The lawsuit stems from the ongoing antitrust investigation into a widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition and unreasonably restrain trade for generic drugs sold across the United States.

The Delaware Health Care Commission released a report containing preliminary data on state-wide healthcare spending in 2018, according to State Network. Preliminary data reveals that total healthcare spending per person–across Medicare, Medicaid, commercial and other payers–averaged $8,110 per Delawarean in 2018. This includes non-claims-based payments made to providers, including performance incentives and care management. The greatest proportion of spending was dedicated to hospital inpatient spending, followed by payments for physician and hospital outpatient services. The report follows the establishment of a healthcare spending benchmark that aims to control healthcare spending growth in Delaware over time.

Kentucky passed a law to provide financial aid to rural hospitals struggling to stay afloat while the state is battling COVID-19, according to Kentucky Today. The legislation allows the Cabinet for Economic Development to provide loans to struggling hospitals for a variety of purposes, including upgrading facilities, maintaining or increasing staff levels and providing healthcare services not currently available. The action follows reports that many rural hospitals in Kentucky are in poor financial health.

Utah’s Medicaid program will cover COVID-19 testing for both active infections and antibodies for uninsured Utahns, according to The Salt Lake Tribune. Providers will now be reimbursed through the Medicaid program, which has greater funding availability than the federal Health Resources and Services Administration, the previous funding source. The funding will last through the public health emergency period and will cover testing for active infections, testing for antibodies and further diagnostic tests for Utah residents and citizens without health insurance.