30,000 state employees, teachers poised to lose name-brand prescription coverage under state plan - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 24, 2022 Newswires
Share
Share
Post
Email

30,000 state employees, teachers poised to lose name-brand prescription coverage under state plan

Indianola Enterprise-Tocsin (MS)

Some people covered by the state plan don't believe the substitute medication suggested for them will work and feel that the state is inserting itself between them and their doctor.

More than 30,000 state and public school employees received letters this week informing them their medications will no longer be covered under the state's prescription drug program as of July 1 — the results of an effort by state leaders to save money.

A little-known board comprised of 14 state government leaders voted in August 2021 to make the changes to the prescription plan, according to meeting minutes. A spokesperson for the Mississippi Department of Finance and Administration said the change was made after COVID-19 caused an increase in costs. The change will save the state an estimated $15 to $18 million, according to DFA.

Earlier this year, lawmakers appropriated $60 million in American Rescue Plan Act funding to the plan to offset COVID-related losses.

Almost 197,000 state employees, dependents, spouses and retirees receive state health insurance benefits. The health benefits are administered by Blue Cross & Blue Shield of Mississippi, and CVS Caremark is the pharmacy benefit manager for the prescription drug program.

"This is a way to curb those costs and continue to provide excellent coverage to state employees," DFA spokesperson Marcy Scoggins said in an emailed statement. "An external advisory board of doctors and pharmacists recommends to CVS Caremark what (medication) substitutions are allowed. In the majority of cases, the substitute has the same efficacy at a lower cost."

But some covered by the plan don't believe the substitute medicine CVS Caremark suggested for them will work and feel that the state is inserting itself between them and their doctor.

One school administrator, who did not want her name used because of her employment, received a letter about medication she began taking several months ago for a thyroid condition. Her plan would no longer cover it beginning July 1, the letter from CVS Caremark and DFA stated.

The medicine, Armour Thyroid, costs about $100 a bottle. She was previously paying a $25 copay.

"When they change medicines like that, you have to start the process all over and go through, 'Well this dosage is not enough, this dosage is too much,' and have your levels drawn every so often," she said.

She said she doesn't understand why anyone besides her doctor is dictating what medicine she should take.

"I'm just aggravated. It's like they think they know better than what my doctor knows," she said.

A teacher, who did not want her name used in a story for fear of retribution, first received a notice from CVS Caremark dated May 11 that Ozempic, her medicine for insulin resistance, will no longer be covered. The company wrote that "… starting July 1, 2022, you'll have to change to a preferred medication."

The preferred medicine listed was metformin, but she has already been taking that medication for nearly a decade, she said.

"On metformin alone, we weren't having any success … so (the doctor) said, 'Let's try this,' and it was like magic," she said, referring to the once-weekly injectable Ozempic.

The retail price for the drug is around $1,000. With insurance coverage, the teacher currently pays a $25 copay.

After talking to her doctor about submitting a prior authorization form – which the company could then approve or deny and continue covering the Ozempic – she got another letter the following week.

"Starting July 1, 2022, there will be a limit on the amount of medication that your plan will cover. Once you reach the limit, you will have to pay the entire cost for additional medication which exceeds the limit," the May 17 letter stated.

The limited amount covers what she takes, but she says she's still a bit confused.

"I'm scared that they will jerk the rug out from under me mid-year and send another letter saying my medication won't be covered," she said.

An employee at the University of Mississippi Medical Center, who also did not want her name used because of her job, has been using Synthroid for 10 years since having her thyroid removed. She's tried the generic that CVS Caremark has suggested for her, but it doesn't work.

"We tried all different types of replacement hormones and different doses, and I'm now stable on one, and I don't want to change again," she said. "It just seems flippant to me that they assume everyone can switch from Synthroid to the generic."

She said she plans to try to qualify for a special savings program with the company. If that fails, she plans to talk to a friend whose doctor orders the drug from a Canadian pharmacy at a less expensive price.

The last time similar changes were made to state employees' prescription coverage was in 2019, according to DFA. DFA did not answer follow-up questions from Mississippi Today about how many people were affected and the amount of money saved that year.

The state health insurance plan's reserves have dwindled from $274 million in 2015 to $113 million in 2020, according to a presentation made by Cindy Bradshaw, state insurance administrator, to the Senate Education Committee in September 2021.

Drug claims have increased every year in that same time period except for one, with the most recent increase of 5% occurring in 2020.

-- Article credit to Kate Royals of Mississippi Today

Older

Tax credits customers warned about scammers posing as HMRC

Newer

House Financial Services Committee – Hearing

Advisor News

  • Investors aren’t waiting out uncertainty
  • Transamerica and Advo(k)ate Advisors launch pooled employer plan
  • ‘I wish I’d met him sooner:’ Karlan Tucker remembered for integrity, faith
  • Why women must be more engaged in investing
  • SEC moves to simplify electronic delivery of investor communications
More Advisor News

Annuity News

  • Delaware Life Launches a New Bonus Fixed Index Annuity Built for Growth, Protection, and Flexibility
  • LIMRA: Annuity sales set new quarterly record with $123.9B in Q2
  • CANNEX names Gary Baker as its new CEO
  • Corebridge adds options to its Power Series of indexed annuities
  • Corebridge Financial enhances The Power Series of Index Annuities
More Annuity News

Health/Employee Benefits News

  • New 2026 Study Reveals Long-Term Care Insurance Costs Can Differ By Thousands of Dollars Among Leading Insurers
  • Study Data from University of Kentucky Update Knowledge of Opioids (Naloxone receipt following non-fatal opioid poisoning among Medicaid beneficiaries): Opioids
  • State Health Plan brings back Blue Cross NC
  • ‘Worst nightmare.’ Medicare patients on alert as deadline nears for UHealth, United
  • Employers are considering ICHRAs, but barriers to adoption remain
More Health/Employee Benefits News

Life Insurance News

  • Trademark Application for “DIGITAL ADVISOR SUCCESS HUB” Filed by Jackson National Life Insurance Company: Jackson National Life Insurance Company
  • AM Best Revises Issuer Credit Rating Outlook to Stable for Members of Tennessee Farmers Insurance Companies
  • Unum Group Reports Second Quarter 2026 Results
  • Delaware Life Launches a New Bonus Fixed Index Annuity Built for Growth, Protection, and Flexibility
  • LIMRA predicts strong life and annuity sales for the rest of 2026
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Agent Review Launches Video AI Identity Verification to Help Protect Insurance Professionals, Consumers and Public Trust
  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet