Buckeye Reporter

On Wednesday, The Buckeye Institute provided written testimony to the Ohio House Insurance Committee regarding Ohio House Bill 505. The organization urged lawmakers to consider "sound, market-based reforms that will lower regulatory barriers to healthcare, encourage drug innovation, help maintain drug affordability, and improve patient health."

Rea S. Hederman Jr., vice president of policy at The Buckeye Institute, highlighted concerns over certain policies in House Bill 505. He pointed out that imposing a minimum government-mandated dispensing fee on Ohio pharmacies would "likely raise consumer prices at the pharmacy rather than lower them." Hederman noted that similar policies at the federal level have already increased dispensing fees under Medicaid. He argued that the new rule "will use government influence to benefit large chain pharmacies…and it will harm retail consumers by reducing price competition and making the trip to the pharmacy more expensive."

Despite these concerns, Hederman acknowledged positive aspects of House Bill 505. He praised provisions barring contracts requiring pharmacists to "demonstrate and maintain additional credentials" beyond state requirements.

Hederman encouraged lawmakers to adopt policies aimed at reducing regulatory barriers, encouraging market growth and competition, and preventing undue government influences that could restrict supply and raise consumer prices.

In his testimony submitted to Chair Lampton, Vice Chair Barhorst, Ranking Member Jarrells, and other committee members, Hederman emphasized that retail drugs account for approximately 10 percent of all healthcare costs in Ohio. This significant sum underscores patients' concerns about pharmaceutical prices.

Hederman reiterated the importance of focusing on reducing regulatory barriers while promoting innovation and competition in healthcare markets. He noted that while House Bill 505's credentialing provisions align with these goals, its mandatory minimum pharmacy dispensing fees do not.

The Buckeye Institute continues its mission as an independent research institution advocating for free-market public policy across states.