In a letter to New York State Senator James Seward, the Federal Trade Commission warns a New York Assembly bill that regulates health plan use of mail order pharmacies would would likely raise prescription prices and reduce access to affordable drugs.

According to the FTC, Assembly Bill 5502-B would limit a health plan's ability to offer favorable treatment to a low cost mail order pharmacy and would undercut pharmacies' incentives to bid aggressively for a health plan's business. This would likely raise prices for health plan prescription drugs and those cost increases could be passed on to patients.

In some cases, the FTC argues, plans may respond to higher costs by reducing the scope of prescription drug coverage, or by eliminating prescription drug coverage entirely.

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