March 31, 2026
Louisiana Senate
Insurance Committee
900 North 3rd Street
Baton Rouge, Louisiana 70804
Dear Senator,
On Wednesday, April 1, 2026, the Senate Insurance Committee will consider SB 369. On behalf of the more than 2,868 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in the state of Louisiana, I urge you to oppose this legislation, which would impose price controls on prescription drugs covered by Medicare.
Throughout history, price controls have distorted markets, hurt innovation, and exacerbated the problems they were created to fix. SB 369 would cap the amount that state insurance plans pay for prescription medicines, including brand-name drugs, biologics, generic drugs, and biosimilars, at the price Medicare pays for those drugs. Capping prices will restrict access to vital medicines. According to a January 2025 report by the National Community Pharmacists Association, 32.8 percent of independent pharmacists “have already decided not to stock one or more of the drugs listed in the Medicare Drug Price Negotiation” and 60.4 percent of independent pharmacies are considering following suit.
Requiring state sponsored insurance plans to cap the amount they pay for prescription drugs is a price control that would further distort the pharmaceutical marketplace and expand government control of Louisiana’s healthcare system. If enacted, SB 369 would harm patients by stifling the development of new treatments and cures.
Louisiana legislators should ask their congressional delegation to hold the Food and Drug Administration’s feet to the fire to clear the backlog of generic drugs awaiting approval. This would be a far more effective way to help bring down the price of prescription drugs than to pass this harmful and counterproductive legislation. A permanent market-based solution, not government intrusion, will lower prices. For these reasons, I urge you to oppose SB 369.
Sincerely,
Tom Schatz
President, CCAGW