Requires insurers to cover the substitution of a brand name prescription drug when the federal food and drug administration has declared that there is a supply…

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic3

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Nathalia Fernandez says this is needed

In light of recent shortages of generic drugs, it is imperative that insurance providers cover brand-name drugs at the same price as generics during times of shortage. Drug shortages pose a public health concern, as they can impact the availability of essential medications for a wide range of conditions. Ensuring that patients have access to needed medi- cations at affordable prices is crucial for maintaining public health and preventing unnecessary complications. This bill would ensure such access by requiring that, in the event the FDA recognizes that there is an ongoing supply issue with a generic drug, insurers providing coverage of that generic drug in their formulary will also cover the brand-name version of that drug for the duration of the shortage. This proactive measure can help safeguard patient health, maintain continuity of care, and promote cost-effectiveness within the healthcare system. During drug shortages, patients may have to switch from their prescribed generic medication to the brand-name version of that same medication. However, many insurers only provide coverage for the generic version of drugs, regardless of their availability. This often requires patients to choose between doing without the medication they have been prescribed, paying exorbitant fees, or attempting to switch to a different medica- tion entirely than the one that they have been prescribed by their doctor. Such switches may disrupt a patient's continuity of care and treatment plan. By covering brand-name drugs currently experiencing shortages at generic prices, insurers can ensure that patients have access to the medication they need without compromising their health or continuity of care. Finally, while brand-name drugs are typically more expensive than gener- ics, covering them at generic prices during shortages can actually be cost-effective in the long run. Avoiding potential health complications or hospitalizations resulting from medication switches can ultimately save money for insurers and the healthcare system as a whole.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.