State legislators debate regulation of 'alternative funding programs' for high-cost drugs

The National Council of Insurance Legislators included draft minutes for a discussion of the topic in a packet prepared for a recent in-person NCOIL meeting in Atlanta. The discussion occurred at an NCOIL state-federal relations committee meeting held earlier in the year.

Jim Dunnigan, a Republican state representative from Utah, said the largest health plan administrator in his state tells employers about the idea of using an alternative funding program strategy, according to the draft minutes.

Dunnigan said plans adopt the alternative funding program strategy in an effort to cope with very high prescription drug costs.

"There aren't, in my opinion, millions of people out there waiting to pay significantly higher health insurance premiums," Dunnigan said.

Theresa Alban, federal policy director at the Cystic Fibrosis Foundation, said one problem is that some alternative funding program providers say they'll help patients who need expensive drugs import the drugs.

"We have seen an influx of AFPs using federal laws as a way to convince employers that it's safe and cost-effective to import medications," Alban. "Everything will go smoothly. Everything will be fine. I can tell you: Our CF patients have not experienced that."

Some legislators who participated in the discussion, including Jeff Keicher, a Republican state representative from Illinois, suggested that one possible response could be to license and regulate the alternative funding programs, rather than to try to ban the programs.