State Senate passes health care package as Medicaid spending debate heats up

Feb. 1—STATE CAPITOL — The state Senate passed a package of bills Tuesday that aim to reduce the cost of prescription drugs by eliminating cost sharing for insulin and allow the state to pursue its own drug manufacturing.

Before the state Senate went into session, state Senate Majority Leader Andrea Stewart-Cousins said the package of bills is another step in the Democratic conference's mission to ease cost-of-living burdens.

"We are here to serve the people, to address their needs, to prioritize issues that we know matter most to working families across the state," she said. "One of the issues facing families across New York is the rising cost of life-saving prescription drugs. Parents face hard choices every day; whether they're paying their utility bill or putting food on the table or covering the cost of prescription drugs."

If passed by the state Legislature and signed into law, "the New York State Affordable Drug Manufacturing Act" would make New York the second state in the nation to develop its own line of generic drugs and lower costs. California signed similar legislation in 2020.

State Sen. Gustavo Rivera is chair of the state Senate Committee on Health and sponsors the legislation. He said the bill would allow the state to partner with private companies to prudence generic drugs.

"We're following California, so it's unfortunate that we are not the leaders on this, but I'm glad to be No. 2 on this," Rivera said. "As the leader said, there is plenty of data that shows how a life-sustaining drug is being used sometimes by people at a slower clip then they are supposed to, because they can't afford it."

Rivera is also sponsoring a bill that would eliminate any deductible, copayment, coinsurance or any other cost-sharing requirement for insulin drugs.

Gov. Kathy Hochul in her executive budget proposed a similar bill to eliminate insulin cost-sharing completely.

"Personally, I'm glad the governor stole my bill and I'd be glad to support it," Gustavo said, but noted there are some differences between their bills in regards to Medicaid and private insurance plans.

Other bills included in the package were bills to allow Medicare enrollees to also be eligible for Elderly Pharmaceutical Insurance coverage, require drug manufacturers to report all pay-for-delay agreements to the state Attorney General's Office and establish a drug importation program from countries with consumer safety on par with the U.S. drug supply chain.

As the state Senate moved to pass the bills, dozens of advocates visited the state Capitol Tuesday to urge Hochul to fully fund Medicaid and protest her effort to rein in the state's Medicaid spending.

During her budget address on Jan. 16, Hochul said Medicaid costs increased 11% just since last year and, over the last three years, Medicaid spending is up 40%. She noted the state is also still awaiting repayment of a $1.5 billion one-time bridge loan made to distressed hospitals during the COVID-19 pandemic. She said the state is searching for ways to cut costs and save more than $1 billion on Medicaid costs.

On Tuesday, Hochul again defended her budget proposal.

"So, everybody's screaming about the cuts. Look at the history; I'm trying to make up for lost time. But, no, I can't give you $10 billion dollars this year. I just can't," she said. "That's why we're looking at efficiencies, we're looking at insurance departments. I'm looking at the health care system, holistically. And, again, I know these are the third rails. Housing is a third rail, education's a third rail. But I'm the governor of the state of New York. I have to inject common-sense policies and do what's right for the voters to keep us on a trajectory where we're supporting our kids, supporting our teachers and also supporting our taxpayers."

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