State Rep. Rod Hamilton was diagnosed with multiple sclerosis more than 20 years ago but is serving his seventh term in the Legislature, managing the workload while battling severe pain, a bout of temporary blindness and exhaustion.
"I thought my whole life was over. Little did I know, it was only just about to begin," he said about his diagnosis in a recent interview.
Hamilton, a Mountain Lake Republican, takes a drug called armodafinil to relieve his fatigue. But last year a "pharmacy benefit manager" — a consultant tasked by insurance companies with cutting drug costs — told him he could only take one per day instead of the two his Mayo Clinic doctor recommended. Hamilton said that even though he pays the full $37.07 per month, his pharmacy can only dole out what the benefit manager allows.
"What's the outcome? I'm in a wheelchair," Hamilton said, pointing at the device he uses to get around the Capitol. He said a year ago, with the drug and a regimented schedule of work and exercise, he was climbing four flights of stairs to his office. But no longer.
Hamilton is proposing legislation that would curtail the ability of pharmacy benefit managers, or PBMs, to change a patient's drug treatments in an attempt to protect the relationship between doctor and patient. Thus far, he has been unable to get a hearing on the bill from his House GOP colleagues.
Hamilton and his allies in the medical community are meeting fierce resistance as both Minnesota and the United States grapple with drug costs and a health insurance system facing volatility as Republicans try to replace the Affordable Care Act in Washington and MNsure in Minnesota. More than 22 percent of all health insurance spending now goes to drugs, according to America's Health Insurance Plans, an industry trade group. That's more than hospitals, doctors or any other single health cost. While other medical costs have stabilized some in recent years, drug prices have gone up by double digits for several years in a row.
Pharmacy benefit managers, little known to the general public but important players in health care, have stepped into the American medical bazaar as lucrative middlemen. The biggest firm has revenue of more than $100 billion per year.
PBMs help insurance companies negotiate with drug companies for discounts while also approving the drugs for insurance policyholders.