Friday, March 17, 2023

In this issue...

  • IMA Priority Issue: Success on GME Expansion!
  • Update on Medicaid Managed Care
  • Pharmacy Benefit Managers

IMA Priority Issue: Success on GME Expansion!


S 1147, the appropriations bill to expand residency training opportunities in Idaho and provide funding for the WWAMI and University of Utah medical education programs, passed the Senate on March 13 and the House on March 16. GME expansion has been one of the IMA’s top priorities over the past five years.

 

However, this year what is usually a benign funding measure became controversial. Over the last few months, the Idaho Freedom Foundation (IFF) has repeatedly attacked the University of Washington School of Medicine (UWSOM), the WWAMI Program, and elective classes available to WWAMI participants. IFF accused the programs of violating Idaho law prohibiting the use of state funds for abortion education, a claim which was soundly refuted by UWSOM, WWAMI, the University of Idaho, and Idaho Chooses Life. State funds are only used for required medical education courses, not electives. None of the classes in question are required, and no state funds are used for them.

 

IMA thanks those legislators that helped pass this critical funding bill. Most notably, the Lobby Team would like to highlight Sens. Dave Lent (R-Idaho Falls) and Kevin Cook (R-Idaho Falls), and Rep. Britt Raybould (R-Rexburg), who spoke in favor of S 1147. IMA gives a special shout-out to Rep. Raybould, who did an amazing job articulating the importance of these physician workforce programs while successfully combatting

misinformation.

 

As a reminder, $824,000 has been appropriated this year for the GME plan. This includes $600,000 for 10 new residents and a $2,000 per resident funding increase for existing seats. An additional six new seats are created with federal funds, for a total of 16 new GME positions.

Update on Medicaid Managed Care


Last week, we highlighted HB 200, which would have tasked the Department of Health and Welfare to explore and create a path to move the state away from a value care organization model (VCO) and towards a managed care model (MCO). HB 200 was ultimately held in the House Health and Welfare Committee, largely because the bill failed to include a mechanism for stakeholders to participate in the exploration and potential implementation process. 


Addressing those concerns, on March 14, Reps. John Vander Woude (R-Nampa) and Jordan Redman (R-Coeur d’Alene) introduced HCR 9. HCR 9 would create a task force to complete a study comparing the costs and benefits of value-based services and managed care services and make recommendations regarding a comprehensive Medicaid managed care program in Idaho.


The task force will comprise legislators from both the House and the Senate and receive input and assistance from non-voting stakeholders, including hospitals, physicians, other Medicaid providers, and insurers. The task force will have to provide its findings, recommendations, and potential legislation by January 31, 2024.


HCR 9 unanimously passed the House Health and Welfare Committee and then the full House on March 16.

Pharmacy Benefit Managers


In 2020, the Idaho State Legislature passed HB 363 which established Idaho’s first regulations on pharmacy benefit managers (PBMs). Since then, the state continues to see bad actors with many of them finding ways to circumvent the law, including changing names, contract terminology, and their terms of service. Simply put - HB 363 created guidelines but lacked enforcement.

 

On March 7, with the introduction of HB 215, the House Health and Welfare Committee took another step to combat bad actors. Introduced by Rep. Jordan Redman (R-Coeur d’Alene), HB 215 provides the enforcement for the Department of Insurance to hold those bad actors accountable.

 

Nearly a dozen people testified in the bill’s favor. From larger pharmacies like Albertsons to local community pharmacies, stories were shared about profit erosion as they are upside down on reimbursements and forced to take on PBM contracts that are not mutually beneficial.

 

The House Health and Welfare Committee seems interested to push harder on this issue in the future. Rep. Josh Wheeler (R-Ammon) pressed one witness on the “inherent conflict of interest” at play, while Vice Chair, Rep. Marco Erickson (R-Idaho Falls) challenged the committee to consider looking at the rising cost of pharmaceuticals in the Medicaid budget and challenged the committee to study the issue deeper.

 

HB 215 has successfully passed the full House and Senate Health and Welfare Committee and is currently awaiting action in the full Senate.

Throughout the Legislative Session, IMA monitors legislation and provides status updates every Friday. Click here to view the IMA Bill Tracker.

If you ever have any questions or need any advice, don't hesitate to touch base with us.


Mike Cunnington, Director of Government Affairs

(208) 344-7888

cunnington@idmed.org

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