Louisiana law requires some health plans to give lower-cost generic drugs and biosimilars better cost-sharing and no harder path to coverage.
When a qualifying generic costs less at wholesale, an insurer covering its reference drug must give the generic a lower-cost-sharing tier and make it no harder to obtain.
When a qualifying biosimilar costs less at wholesale, an insurer covering its reference product must offer at least one biosimilar at a lower-cost-sharing tier and make it no harder to obtain.
Insurers may use net cost to compare drugs, but must report prices, patient cost-sharing, and rebate use to the insurance commissioner; the state publishes a yearly summary while protecting nonpublic details.
An insurer must immediately place a qualifying generic on a plan tier with lower cost-sharing and cannot make it harder to get than the reference drug. This applies to a generic drug approved and marketed under the referenced federal law when it meets the price conditions. The insurer’s plan must cover the reference drug on the generic’s first marketing date. The generic’s wholesale acquisition cost must be lower than that of the reference drug and any other generic sharing its reference drug on that date. The rules continue only while the generic’s wholesale acquisition cost remains lower. The insurer must act immediately when the generic first reaches the market; the rules last only while its wholesale cost stays lower.
An insurer must immediately place at least one qualifying biosimilar on a plan tier with lower cost-sharing and cannot make it harder to get than the reference product. This applies to a licensed and marketed biosimilar that meets the price conditions. The insurer’s plan must cover the reference product on the biosimilar’s first marketing date. The biosimilar’s wholesale acquisition cost must be lower than that of the reference product and any other biosimilar sharing its reference product on that date. The rules continue only while the biosimilar’s wholesale acquisition cost remains lower. The insurer must act immediately when the biosimilar first reaches the market; the rules last only while its wholesale cost stays lower.
Insurers may compare drugs using net cost instead of wholesale cost and must report specified price and cost-sharing information to the insurance commissioner when they choose that method for a branded drug. The notice duty applies to a health insurer that chooses net-cost calculations for a branded prescription drug in its formulary. For each drug code, the notice must include wholesale and net costs for the branded drug and any available generic or biosimilar, as well as the branded drug’s cost-sharing and the amount that would apply if the lower-cost drug had a better tier. The notice must explain how the branded drug’s manufacturer rebate is used. Information the state obtains that is not already public is confidential and exempt from public records disclosure; the commissioner must publish a yearly summary that includes an analysis of patient costs. The insurer must notify the commissioner in writing within 30 days of choosing net-cost calculations for a branded drug; the commissioner reports yearly.
No hearings or votes scheduled.