Insurance companies say 'off-brand' bill will raise pharmacy costs

Premiums will rise if the Legislature passes a bill allowing drugs to be used for treatments other than those approved by the Food and Drug Administration, insurance companies warn.

Senate Bill 56, referred to as the "off-brand" bill, was passed by the Senate Commerce and Labor Committee last month. The measure, now in the Assembly Commerce and Labor Committee, must be voted on by May 14 to meet the 120-day limit on the Legislature.

The bill is supported by such groups as the Nevada Nurses Association and American Cancer Society and opposed by managed-care organizations throughout the state.

Mark Savage, a lobbyist with the American Cancer Society, said SB56 would allow cancer patients to use at least six drugs for purposes other than what has been approved by the FDA. The drugs, he said, are known to relieve nausea and vomiting.

"If they relieve pain and suffering, that's what we want," Savage said. "About 8,000 people will be diagnosed with cancer in Nevada this year, and these drugs could help them."

But Marie Soldo, a lobbyist for the Nevada Association of Health Plans, said SB56 would drive up costs in pharmacy benefits packages offered by health maintenance organizations.

"There isn't one mandated benefit that doesn't have merit," Soldo said, adding that merit has to be weighed against cost. "The average premium is expected to go up 7 to 10 percent this year, and when we add mandates, they will have a significant effect."

Soldo said a study should be done before SB56 is passed to see if the mandate will raise premiums.

The Nevada Nurses Association, in written testimony before the Senate Commerce and Labor Committee in February, said SB56 provides "a balance" between the patients' need for care and the insurers' need to prevent abuse.

"Patients with debilitating illnesses such as cancer need access to innovative treatments in a timely manner without undue financial and emotion strain," the group wrote, noting that the nonapproved uses of the medications are supported by medical research.

Assemblywoman Barbara Buckley, D-Las Vegas, chairwoman of the Assembly Commerce and Labor Committee, said she expected to schedule a hearing on SB56 when the committee meets on Tuesday.

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