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Pharmacists, patients and insurers clash in committee over alternative funding programs; bill moved to next year for revision
Summary
After extended testimony from pharmacists, patients, employers and insurers, the Commerce and Labor Committee agreed to carry SB 4‑20—the bill aimed at banning alternative funding programs that steer insured patients out of coverage—into early 2026 for further work and compromise.
Senate Bill 4‑20 prompted one of the longest panels of witnesses in the Commerce and Labor Committee, as pharmacists, patients with chronic conditions, employers and insurers described competing views on so‑called alternative funding programs (AFPs) and co‑pay maximizer arrangements.
Physicians and specialty pharmacists testified the alternative programs delay access to necessary drugs by steering insured patients away from an insurer’s standard pharmacy benefit, and create logistical hurdles—import requirements, telehealth visits with international providers, and weeks‑long delays. A specialty pharmacist presented internal health‑system data showing AFP‑enrolled…
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