A Michigan lawmaker is targeting an insurance loophole that can drive up prescription drug costs, often without patients even realizing it.
State Senator Stephanie Chang has introduced legislation to change what are known as co-pay accumulator programs, which critics say are costing Michiganders lots of out-of-pocket costs.
With nearly 69,000 people in the state expected to be diagnosed with cancer this year, according to the American Cancer Society, supporters say the policy could impact many patients who rely on costly medications. Chang explained how accumulators work.
“You can use a coupon for the copay, but it doesn’t actually reduce your deductible in any real sense. And so people end up still having to pay the same amount that they would have had to.”
Chang warns that this kind of challenge can force patients to choose between paying their bills and staying on treatment. Her legislation was introduced last week and has been referred to a Senate committee, where it will need a hearing before moving forward. Chang says she’s confident it will receive bipartisan support.
Insurance groups counter the programs help control rising drug costs and keep premiums from increasing for everyone.
