Manning Introduces Bill to House Insurance Committee

COLUMBUS – State Representative Gayle Manning (R- North Ridgeville) has introduced legislation to prevent insurance company from requiring a physician administered drug to be purchased through an insurer’s specialty pharmacy before being shipped to a healthcare provider. 

White-bagging insurance practices happen when an insurer mandates certain drugs be purchased from the insurer’s preferred specialty pharmacy, then transported via a commercial carrier to the healthcare provider to be used in treatment.

“These insurance practices may be cost efficient for the company, but do not consider the health of the patient,” said Manning. “They can lead to treatment delays since the patient must wait until the drug is received by the healthcare practice, which can take days or perhaps even weeks if there are issues with delivery, damage or administrative hurdles on the insurer’s side. We don’t want Ohioans waiting on critical drugs so insurance companies can make a few more dollars.”

To combat these practices, Manning’s legislation will prohibit an insurance provider from requiring or incentivizing physician-administered drugs or medications by an affiliated pharmacy. Insurance providers will also be prohibited covering the cost of such drugs with a higher cost-sharing if the drugs are distributed outside of a pharmacy setting.

The legislation also has built-in protections for patients by allowing insurance providers to work with certain pharmacies if the drugs require compounding or require a patient’s clinical presentation for the administration of the drug.

House Bill 156 has not yet been scheduled for additional hearings in the House Insurance Committee.