Connecticut Passes Healthcare Affordability Law

In 2024, prescription drugs will become a bit more affordable for Connecticut residents.

The state of Connecticut recently passed a healthcare affordability law that includes provisions to launch a state-level prescription drug discount program and increase price transparency for high-cost drugs. Under this new legislation, all Connecticut residents will be eligible to receive a free prescription drug discount card. The cards will have discounts of up to 20% on brand-name drugs and up to 80% on generic drugs.

Employers should be aware that the new law also impacts health plans. The law bans anti-competitive contracting provisions, including:

• Anti-tiering clauses that require a health plan to extend preferred value tier status to all facilities in a health system.
• Anti-steering clauses that prohibit insurers from using incentives to direct patients to high value providers.
• “All-or-nothing” clauses that require health plans to accept all providers in a health care system.
• Gag clauses that prevent the parties from disclosing price, terms, or other relevant information to a third party.

This legislation is set to take effect on July 1, 2024. While not directly impacting employers, the law also includes provisions calling for studies on Medicaid, Medicare Advantage, pharmacy benefit managers, and the feasibility of the state purchasing certain prescription drugs in bulk. Connecticut employers should contact their carrier to see if any changes need to be made to their plan or service agreement. If you have any questions, please contact your OneDigital consultant.

For additional updates from the OneDigital compliance team, check out our Compliance Confidence blog.