Health Care Costs in Louisiana are Already too High
If there is one industry that suffers from overregulation, it’s the health care industry. Anyone seeking medical care has faced the mounds of confusing paperwork which adds to the already high cost of care. Unfortunately, there is a move afoot that would increase the health care red tape, leading to higher costs for patients.
This effort would add extra regulations to Pharmacy Benefit Managers (PBMs). PBMs are organizations that work to lower the price of prescription medications to health care providers. The lower costs the PBMs secure are then passed down to patients when they purchase their prescriptions. The cost of prescriptions are reduced because of the work of PBMs. The legislation would require these PBMs to be licensed under the Louisiana Board of Pharmacy. This is unnecessary, as PBMs are already licensed by the Department of Insurance and are not pharmacists.
Louisiana is already riddled with far too many boards such as occupational licensing boards and boards for riverboat pilots. These boards often limit competition and choice, raising prices for consumers.
There is no question the health care and pharmaceutical industries are in need of reforms to lower the cost to patients by cutting down on complexity, but attempts at reform should cut the red tape, not add to it. Louisianans can’t afford more regulation.