NY Step Therapy Law to Boost Prescription Drug Costs By as Much as $530M, Insurers Say

 

By James T. Mulder

ALBANY, N.Y. -- A new state law that took effect Jan. 1 that curbs the ability of insurers to use "step therapy" will boost prescription drug costs in New York by as much as $530 million, according to an estimate by an insurance industry group.

The New York Health Plan Association criticized Gov. Andrew Cuomo for signing on New Year's Eve a bill that reforms a practice used by insurers to force patients to use the least expensive drug first, even if a patient's doctor believes a different drug is more appropriate.

Patient groups lobbied for passage of the bill that makes it easier for doctors to override step therapy requirements if they believe using the least expensive drug first could have a negative effect on patients.

The association, which represents insurers throughout the state, said the new law will create problems for its members whose rates for 2017 policies have already been approved and cannot be modified.

The trade group said the new law will create instability for health plans and consumers, and will boost Medicaid costs borne by taxpayers. 

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Source: NYup.com (via The Empire Report)