Rhode Island Senate Bill S2197

Rhode Island 2022 Regular Session

• Introduced: 2/8/22
• Refer: 2/8/22

Caption

The Rhode Island Rare Disease Medication Accessibility, Affordability And Reinsurance Act

Impact

The Act mandates the creation of a program overseen by the Executive Office of Health and Human Services (EOHHS), which will involve an advisory council to recommend high-cost drugs for coverage and set the necessary funding contributions from insurance providers. By aligning the costs across all insurers and establishing a reinsurance mechanism, the bill seeks to distribute financial responsibility more evenly among stakeholders. This may lead to more comprehensive insurance coverage for rare disease treatments and help mitigate the risk of employers and insurers excluding these costly medications from their plans.

Summary

S2197, known as the Rhode Island Rare Disease Medication Accessibility, Affordability, and Reinsurance Act, is a legislative initiative aimed at improving access to high-cost medications for rare diseases. The Act establishes a rare disease medication reinsurance fund to alleviate the financial burdens associated with these treatments, which are often prohibitively expensive and inadequately funded through traditional healthcare financing structures. The overarching goal is to ensure equitable access to necessary medications for individuals suffering from rare diseases while protecting insurers and employers from disproportionate financial impacts.

Contention

Noteworthy areas of contention surrounding S2197 include concerns regarding the potential impact on health insurance premiums. Insurers may be allowed to pass on the costs associated with the funding contributions to their customers, which has raised apprehension among consumer advocacy groups and some legislators about escalating insurance rates. Additionally, there are discussions about the effectiveness of an advisory council comprised of various stakeholders, and whether its recommendations will genuinely reflect patient needs or be influenced unduly by profit-driven stakeholders in the pharmaceutical industry.