A new Missouri Senate committee is reviewing ways to lower healthcare costs. Lawmakers in the first meeting of the new interim committee heard from key stakeholders involved in the healthcare industry. The committee will cover a variety of health care issues related to hospitals, pharmacies, insurance companies, drug makers and other healthcare providers.

Jorgen Schlemeier, a registered lobbyist focusing on healthcare, said that pharmacy benefit managers are the reason prescription drug prices are high.

“Once you take a drug that typically is $50 and through the rebates, raise it to $100, then on top of the $100, the PBMs actually have figured out a way to increase the cost not from the manufacturer, but being the middleman between the transaction,” he testified.

Schlemeier looked at over 40 different studies, and said that no matter which one you cite, they all come to the same conclusion.

Bill Anderson with the Missouri Hospital Association said that hospitals are often listed as a driver for high healthcare costs.

“Hospitals are 24/7/365 operations,” Anderson said. “There have to be people there when there’s people in the hospital being treated. That is expensive. Hospitals also must treat anyone who walks in the door, regardless of their ability to pay. Hospitals generally treat higher acuity patients. You know, most of the people are coming to the hospital for treatment are very sick.”

He also said that hospitals are regulated at the federal and state levels, which can be costly.

Missouri Farm Bureau Senior Policy Advisory Emily LeRoy also spoke to the Senate committee. She said that affordable health coverage is a significant barrier for farmers in rural Missouri. She recommended expanded health care options, following legislative attempts to bring Farm Bureau health plans to Missouri.

“These health plans would cover individuals and families who are under 65-years-old,” LeRoy said. “It would function very similarly to traditional insurance with access to comprehensive coverage that includes preventative services, prescription drug coverage, emergency services, teladoc, and more. In other states, these plans can offer premiums that are up to 30% lower than other comparable plans.”

The committee, chaired by Sen. Sandy Crawford, R-Buffalo, will issue a report on findings and recommendations by the end of the year.

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