Indiana workers comp reform includes rules for repackaged drugs

Indiana Gov. Mike Pence has signed into law workers compensation reform legislation that implements several cost containment measures, including regulations for repackaged drugs.

The new law, signed Saturday, imposes a fee schedule for medical services at 200% of Medicare's rate, caps the price of medical implants, and mandates that repackaged drugs cannot be sold for a higher price than the average wholesale price established by the original manufacturer.

The American Insurance Association on Monday hailed the signing of H.B. 1320 into law.

“We are especially pleased that the legislation contains provisions that will help curtail the rapidly escalating costs of repackaged prescription drugs in Indiana's workers compensation system,” said Steve Schneider, Midwest region vice president of the Washington-based association. “By imposing a fee schedule with a maximum reimbursement rate and limiting the increasing costs of non-pharmacy dispensed prescription drugs for injured workers in Indiana, H. B. 1320 is an important step forward in addressing this growing problem.”