On February 25, Associate Policy Director Karrington Anderson testified before the Finance Committee in support of SB 306 – Workers’ Compensation – Prescription Drug and Pharmaceutical Services – Reimbursements.
This bill would establish a clear and sustainable fee guide for the reimbursement of prescription drugs and pharmaceutical services under the Workers’ Compensation Commission.
Currently, the Commission regulates fees for medical services but lacks a similar framework for prescription drugs, dental services, or durable medical equipment. This gap has led to excessive and inconsistent pricing, particularly from out-of-network pharmacies and physician-dispensed medications, with some drugs seeing markups as high as 77%. Workers’ compensation claims remain a significant cost driver for counties, and the absence of pricing regulations results in inflated costs that burden local government budgets and increase insurance premiums.
This structure would help ensure fair and transparent pricing while promoting financial sustainability within the workers’ compensation system. By curbing excessive costs and aligning pricing with industry standards, counties stand to realize substantial savings that can be redirected to other critical public services.
SB 306 was heard in the opposite chamber, the Economic Matters Committee, on March 26. MACo submitted written testimony in support of this bill.
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