Michigan bill demands equal insurance of oral, IV cancer drugs

A new bill requesting equal insurance coverage of oral and intravenous chemotherapy drugs has passed in the Michigan Senate, according to Crain's Detroit Business.

The legislation passed by a vote of 36 to 1.

Advocates of the bill believe it will finally address the cost disparity between oral chemo pills and IV chemo. Due to their higher expense and because health insurers cover them differently, oral chemo pills are associated with higher out-of-pocket costs, according to the report.

"A lot of times the oral is the only or is the best possible medication to use for a certain type of cancer. I want to make sure everybody can afford and have the ability to use the best possible cancer drug they can," said Sen. Goeff Hansen (R), the bill's sponsor. Sen. Hansen's son died from cancer four years ago.

Michigan isn't the first state to move toward such laws. According to a national coalition of cancer organizations, 40 states have passed chemo parity laws within the past seven years.

But opponents argue that the legislation wouldn't alter the bigger issue at hand: overwhelmingly high drug costs. "The costs don't go away. They just get shared differently," said Scott Lyon, senior vice president for the Small Business Association of Michigan, according to the report. "What we're really getting at here is a matter of convenience, and that convenience comes with a pretty high cost," he added, also noting that oral pills and IV drugs "aren't the same."

The insurance industry isn't keen on the legislation, either. Blue Cross Blue Shield of Michigan opposes the measure, and the Michigan Association of Health Plans claims that if the bill is passed, 3.4 million Michiganders could have higher premiums.

The legislation will now move on to the House.

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