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Bill To Require Drug Costs Reports Draws Support and Skepticism

Steve Fitzpatrick , wearing a dark suit jacket, green tie and no mask, sits listening to testimony.
Kevin Trevellyan
/
Yellowstone Public Radio
Montana Republican Sen. Steve Fitzpatrick listens to testimony on Senate Bill 137 during a Senate Business, Labor and Economic Affairs Committee hearing on Jan. 29, 2021.

A bill that would require pharmaceutical companies to disclose prescription drug cost information in Montana drew support from a wide range of health care officials Friday, and skepticism from others who don’t believe it would lower prices as intended.

Quinn Leighton has Type 1 diabetes, which is why they testified in support of Senate Bill 137. In front of lawmakers, Leighton recalled having to ask their parents with help on a $1,200 insulin copay years ago.

“Luckily they were able to help me. But if they could not, I would not have been able to afford my insulin. And I would not have been able to stay alive in that moment,” Leighton said.

Quinn Leighton speaks, maskless, into a microphone at a lectern.
Kevin Trevellyan
/
Yellowstone Public Radio
Quinn Leighton testifies in support of Senate Bill 137 during a Montana Senate Business, Labor and Economic Affairs Committee hearing on Jan. 29, 2021.

Prescription drug prices are expected to rise 6 percent annually through 2027, according to the federal Centers for Medicare and Medicaid Services.

Sponsor and Great Falls Republican Sen. Steve Fitzpatrick said Senate Bill 137 would curb price hikes by requiring annual drug cost reports from pharmaceutical companies, health insurance providers and pharmacy benefit managers, which work out deals between the two groups over medication supplies.

Among the roughly two dozen proponents during Friday’s hearing, John Doran with Blue Cross and Blue Shield of Montana said the bill’s strength is in those multi-pronged reporting mandates.

“Making it a well-rounded piece of legislation that provides actionable insight for state policy makers and governmental agencies,” Doran said.

But Brian Warren with the Biotechnology Innovation Organization, one of two bill opponents, said the proposal lets insurers off the hook regarding info about drug rebates and out-of-pocket costs.

Meanwhile, University of Montana economist Bryce Ward said in an interview that major drug cost reform likely needs to happen at the federal level, especially given Montana’s relatively small leverage within the context of global drug markets.

Ward said Senate Bill 137 would likely have minimal impact without a clear mechanism to use the information it would gather.

“There needs to be commiserate benefit, not just hope of benefit,” Ward said.

Although other states recently enacted similar drug transparency laws, Jackie Jones said the Montana auditor’s office is concerned whether it has jurisdiction to require such reports.

The Senate Business, Labor and Economic Affairs Committee hasn’t yet taken action on Senate Bill 137.

Kevin Trevellyan is Yellowstone Public Radio's Report for America statehouse reporter.