The Ohio Legislature may consider House Bill 453, which would mandate additional regulations on health insurers that want to allow their clients to substitute cheaper generic drugs for brand name prescriptions. This constitutes unnecessary government meddling in the private health care market. It also causes a spike in the cost of prescription medication, as generics are considerably less expensive. Over the past decade, patients across the country have saved $734 billion by choosing generic over brand name prescriptions.

In a letter to the legislature, ATR President Grover Norquist urged lawmakers to oppose this unnecessary regulatory overreach:

HB 453 would mandate an extra roadblock in allowing insurers to substitute a generic drug for a brand name drug. Because such “interchanges” are already regulated by Ohio law, this is a duplicative and unnecessary burden on insurance providers. State government has enough on its plate, with a projected budget deficit in the billions of dollars. Now is not the time to heap more bureaucratic mandates on the private sector, especially in the health care field.

To read the entire letter, see below. For a PDF, click here.

May 24, 2010

Dear Legislator:

At a time when soaring costs are the centerpiece of a national discussion on health care, a bill in Ohio would increase government regulation over the pharmaceutical sector, driving up prescription drug costs in the process. I urge you to reject government meddling in the private sector and oppose House Bill 453, which would add an unnecessary administrative burden to health care providers while driving up the cost of medication for Ohioans.

HB 453 would mandate an extra roadblock in allowing insurers to substitute a generic drug for a brand name drug. Because such “interchanges” are already regulated by Ohio law, this is a duplicative and unnecessary burden on insurance providers. State government has enough on its plate, with a projected budget deficit in the billions of dollars. Now is not the time to heap more bureaucratic mandates on the private sector, especially in the health care field.

Furthermore, by making it more difficult to provide generic drugs, HB 453 would artificially drive up the cost of health care for many Ohioans.Over the past decade, patients have saved $734 billion nationwide by using generic pharmaceuticals, which are less than one-third the cost of brand name drugs. In the midst of this important debate over out-of-control health care costs, state government should not be picking winners and losers in the marketplace, distorting private sector competition and driving up costs for consumers.

More government meddling is not what Ohio needs in the midst of this painful recession. I urge you to oppose and vote against HB 453, a misguided bill that will increase health care costs and empower state government to wield unnecessary influence in the private marketplace.

Onward,

Grover Norquist

CC: Gov. Ted Strickland