They passed state legislation to deal with the PBM’s first (prior to covid). That was the 1st order of business and I feel like there was a lot of hostility back and forth on that issue. There was virtually no cooperation or love lost. I perceived that as an ‘aggressive’ negotiation between the State and other parties. Minnesota Enacts New PBM Law: Notice and Comment Period for Proposed Regulations Open to the Public
I have never perceived us as having formal ‘price caps,’ like other states, so its good you raise this. I will need to look and see if anything changed. The Alec Smith Act applies to a very small number of people. I didn’t think anyone would utilize it and it was set to get phased out automatically if no one did.
I guess I wouldn’t call Alec Smith a price cap - so it must have something to do with the medicare part D issue you raise.
They actually had 500 people use it this year, but that must be because of covid and all the strange things that happened. Or, there may have been concerted effort to drum up people to use it so it didn’t get phased out. Maybe there was a bit of an orchestrated civil effort here.
The State of MN will provide health insurance to virtually everyone who is poor for free - they have done this for at least 25 years (as long as I can remember). In order to NOT have insurance in the State of MN (and be eligible for Alec Smith), you have to work pretty hard. The State plan will pay for a pump and CGM, and insulin. It’s free to anyone who is poor. Generally, In order to not have that, your living on the street and just don’t have the capability to fill out the paperwork due to mental illness or some other tragic condition.
Alec Smith is just not very applicable to very many people. It’s super burdensome, complicated paperwork in order to access it (I, personally, would never be able to figure out how to fill it out…but I have insurance, so I couldn’t use it anyway). Maybe it applies to persons who have recently moved from out of state and aren’t eligible for state care yet.
It’s possible that because of covid, the stars aligned and 500 people utilized Alec Smith this year (unexpected result) and that’s triggering the pharma lawsuit. Self employed persons (whos incomes dropped unexpectedly to $0 and who hadn’t bought health insurance) might have been making heavy use of it.
Filling out the paperwork for Alec Smith feels as time consuming and difficult as filing out the paperwork to just get on the State’s health insurance plan. For that reason, it makes no practical sense to me. I can’t visualize where these 500 users came from.
Your right, its a Medicare part D thing. That’s gotta be it.