JACKSON, Miss. - A new study found that House Bill 1665 “creates a measurable, unavoidable cost increase that falls directly on employees and plan members at the pharmacy counter.”
The analysis found several data points, including:
- The proposed dispensing fee represents a significant increase over current rates of $1-$2, raising the total allowed amount per prescription substantially.
- Rebates cannot offset dispensing fee increases; they are structurally separate mechanisms applied at different times and to different components of the drug cost.
- With 86% of prescriptions in the Mississippi State Employees Health Plan filled as generics, and most generics carrying minimal or zero rebates, the vast majority of prescriptions have no rebate cushion to absorb the fee increase.
- West Virginia, the primary state cited by proponents, published data showing that even with 100% rebate pass-through, premiums still increased. The state's own actuaries called the result an “actuarial wash.”
- The bill applies universally to all pharmacies, including large chain retailers, meaning the cost floor benefits the entire market rather than targeting the independent pharmacies it was designed to protect.
- ERISA preemption creates serious legal vulnerability for self-funded employer plans, which represent the majority of large-employer coverage in Mississippi.
To read the study in its entirety, click here.