Shackleford’s unoffered amendment to HB1604

Yesterday, Feb. 13, State Rep. Robin Shackleford (D-Indianapolis) was set to introduce her amendment to House Bill 1604 on the House floor, expecting a lack of Republican support. However, following a productive meeting with the Chairman of the Insurance Committee, Shackleford agreed to work collaboratively on the amendment's language and bring it to the committee for further discussion before it reaches the floor for a vote.

The underlying bill allows consumers to apply out-of-pocket medical purchases, such as those for medications and medical devices, toward their annual deductibles.

Shackleford’s unoffered amendment would have expanded on this by ensuring that the full cost of prescription drugs, including amounts paid through manufacturer copay savings programs, discounts, or coupons, counts toward both the patient’s annual deductible and out-of-pocket maximum costs.

Shackleford issued the following statement on the amendment:

“Nearly half of Americans are now enrolled in high-deductible health plans through their employer, and almost half of all commercial plans include a separate pharmacy deductible.

“This language is essential to protect Hoosiers from unexpected costs when their savings don’t count toward their deductible and to help ensure that they can afford their medications, no matter the challenges life throws their way.

“I’ve heard from many constituents and clients about this issue, and I’ve experienced it firsthand. To get the costly medication I need, I rely on a manufacturer's copayment card that reduces my payment. After that, I'm left with the remaining price of the drug until I meet my deductible. Unfortunately, the manufacturer’s share doesn’t apply to my annual deductible. Like many Hoosiers, it's frustrating to pay so much every month without seeing any progress toward meeting my deductible.

“Nineteen states have already taken action against copay accumulator programs, which prevent patients’ savings from counting toward their deductible. These programs boost insurers' profits while leaving patients with higher out-of-pocket costs, often without access to necessary medications. The harm caused by these programs is so significant that the Federal Employees Health Benefits Plan recently announced it would no longer accept any plans that use them.

“Fortunately, efforts are underway to address these harmful practices. Legal challenges to copay accumulator programs are already in progress, such as the Copay Accumulator Case 2023, highlighting the growing push to eliminate these harmful policies and protect patients. I look forward to continuing to work with committee members on this issue to ensure Hoosiers are no longer penalized for using savings programs that help them afford their medications.”