Specialty drug legislation pits hospitals vs. insurers at state Capitol [The Wisconsin State Journal]
Jan. 21—Hospitals and patients vied against health insurers and businesses Thursday at a public hearing in the state
Hospitals said the insurer practice, called "white-bagging" and sometimes requiring the use of insurer-owned pharmacies, can disrupt patient care and pose safety risks by adding more steps to drug delivery.
"These decisions have negative consequences on patient safety, drug supply chain, cost, waste and administrative burden on patients and medical care providers," said
Insurers said controlling where certain expensive drugs are purchased saves money by avoiding hospital markups.
The bill "removes nearly every existing tool health insurance providers have to encourage lower cost, higher quality, and more convenient drug administration," said
Introduced in November, the bill has many legislative sponsors from both parties, with hospital and patient groups registering in support and insurance and business groups registering against it.
The bill concerns some specialty drugs that must be administered at hospitals, including for conditions including cancer, multiple sclerosis, rheumatoid arthritis, Crohn's disease and cerebral palsy. More such drugs have been approved in recent years, and many are expensive.
At the hearing Thursday before the state
The insurer, which Holmes did not identify, said its selected pharmacy would send the medication for her to use at the hospital. Hospitals typically oppose using such drugs, in part because they say delivery can be unreliable.
Holmes, who had recently given birth to a second child, eventually got a 90-day reprieve that allowed her to finish her treatment at the
"That was scary, frustrating and honestly unfair," said Holmes, for whom supporters have dubbed the bill "Koreen's Law."
"Alternate sourcing has been an important tool for us, and we've been able to use it quite successfully without interruption, without disruption, without delay," Walker said.
"As we continue to disrupt patient-provider relationships, our patients suffer," Ambord said.
"It is quite shocking that the legislature would consider giving hospitals a monopoly on these drugs and push other competition out of the market,"
___
(c)2022 The Wisconsin State Journal (Madison, Wis.)
Visit The Wisconsin State Journal (Madison, Wis.) at www.wisconsinstatejournal.com
Distributed by Tribune Content Agency, LLC.



AM Best Assigns Credit Ratings to Accelerant Re Ltd.; Affirms Credit Ratings of Accelerant Holdings (Cayman) Ltd.’s Rated Subsidiaries
Business insurance will be discussed
Advisor News
- Equitable launches 403(b) pooled employer plan to support nonprofits
- Financial FOMO is quietly straining relationships
- GDP growth to rebound in 2027-2029; markets to see more volatility in 2026
- Health-related costs are the greatest threat to retirement security
- Social Security literacy is crucial for advisors
More Advisor NewsAnnuity News
- Best’s Special Report: Analysis Shows Drastic Shift in Life Insurance Reserves Toward Annuity Products, and a Slide in Credit Quality
- MetLife to Announce First Quarter 2026 Results
- CT commissioner: 70% of policyholders covered in PHL liquidation plan
- ‘I get confused:’ Regulators ponder increasing illustration complexities
- Three ways the Corebridge/Equitable merger could shake up the annuity market
More Annuity NewsHealth/Employee Benefits News
- Municipalities contend with surprise bills as health costs rise
- Health care in America should be redesigned
Op-ed: We should redesign health care in America. Here's a plan that would help Nebraskans (copy)
- Humana and Thor hit the Casualty List, can revive and thrive
Humana and Thor Hit the Casualty List
- Pols & Politics: Romney, Patrick, Dukakis, Weld, and Healey to celebrate 20 years of MassHealth
- Homage names Allan Fisher as director of administration and strategy
More Health/Employee Benefits NewsLife Insurance News
- An Application for the Trademark “PREMIER ACCESS” Has Been Filed by The Guardian Life Insurance Company of America: The Guardian Life Insurance Company of America
- AM Best Assigns Credit Ratings to North American Fire & General Insurance Company Limited and North American Life Insurance Company Limited
- Supporting the ‘better late than never’ market with life insurance
- Best’s Special Report: Analysis Shows Drastic Shift in Life Insurance Reserves Toward Annuity Products, and a Slide in Credit Quality
- The child-free client: how advisors can support this growing demographic
More Life Insurance News