Louisiana House Bill HB321

Louisiana 2020 Regular Session

• Introduced: 2/27/20
• Refer: 2/27/20
• Refer: 3/9/20

Caption

Establishes a minimum generic dispensing rate requirement in Medicaid managed care (OR SEE FISC NOTE SG RV)

Impact

The implementation of HB 321 is likely to have significant implications for the Medicaid managed care framework. By mandating a 90% generic dispensing rate, the bill intends to enhance the accessibility of cost-effective medication for Medicaid recipients while simultaneously fostering a competitive environment among pharmacy providers to prioritize generics over more expensive brand-name drugs. Such a shift could potentially lower overall healthcare costs within the Medicaid system and increase the utilization of generics, which are typically much cheaper than brand-name alternatives.

Summary

House Bill 321 aims to establish a requirement for Medicaid managed care organizations to maintain a minimum generic dispensing rate of 90%. This legislation is designed to encourage the use of generic drugs within the Medicaid program, which can lead to cost savings for both the state and beneficiaries by promoting more affordable medication options. The Louisiana Department of Health will be responsible for ensuring that the defined dispensing rate is met and maintained in any calendar year as per the provisions of the bill, thus taking a proactive stance in the management of state healthcare resources.

Sentiment

The sentiment around HB 321 appears to be supportive among healthcare professionals and advocates for cost-saving measures within state Medicaid programs. Proponents argue that the bill is a necessary step towards ensuring that Medicaid beneficiaries have equitable access to affordable medicines by lowering the costs associated with pharmaceutical care. However, there may be some concerns regarding the capacity of managed care organizations to meet the stringent dispensing rate, and the potential impacts on patient choice and the availability of certain medications.

Contention

Notable points of contention surrounding HB 321 could include debates over the flexibility of pharmacies to choose which medications to stock and the implications for patient care if generic alternatives are not as readily available. Additionally, there could be discussions about the effectiveness of enforced dispensing rates and whether the bill adequately addresses the complexities involved in generic drug formularies. Ensuring a high generic dispensing rate without compromising quality or patient trust could be additional challenges that stakeholders may raise as the bill progresses through the legislative process.