Insurance coverage of oral cancer drugs advanced

Senators gave first-round approval Feb. 24 to a bill that would require insurance coverage of oral cancer medications.

LB882, sponsored by Omaha Sen. Jeremy Nordquist, would require that a health policy, certificate, contract or plan provide coverage for a prescribed, orally administered anticancer medication that is used to kill or slow the growth of cancerous cells on a basis no less favorable than intravenously administered or injected cancer medications that are covered as medical benefits.

The bill also would prohibit an insurance provider from reclassifying an anticancer medication or increasing a coinsurance, copayment, deductible or other out-of-pocket expense to offset the cost of complying with the bill.

Many Nebraskans cannot obtain oral cancer treatment because it is not covered by their insurance plans, Nordquist said, even in cases where oral medication is the only treatment option.

“These situations aren’t hypothetical,” he said. “They are happening every day.”

Lincoln Sen. Tony Fulton supported the bill, saying one of his constituents found herself in the situation the bill was meant to address. The constituent’s son was diagnosed with cancer and the family discovered that their insurance policy covered only intravenous chemotherapy treatment.

“In her situation, the oral [treatment option] was preferable,” Fulton said. “It gave her son a better chance to live, to beat his cancer.”

Sen. Abbie Cornett of Bellevue also supported the bill, saying oral chemotherapy treatment often has fewer side effects and potential complications than intravenous treatment.

“A lot of these oral chemotherapy drugs are cutting edge medication,” she said. “They may cost more, but they work better and they work quicker.”

Omaha Sen. Beau McCoy urged senators to consider the potential cost of implementing the bill. Seventy-six percent of employers in Nebraska are small businesses that may not be able to absorb additional insurance costs, he said.

“How can we look at LB882 and not look at the impact it will have on small business owners?” McCoy said.

Nordquist said 15 states have passed similar laws without a significant increase in premiums.

“We’re talking pennies per member, per month if anything at all,” he said.

The bill advanced to select file on a 30-4 vote.