[Mb-civic] big pharma still escapes either way in calif
IHHS at aol.com
IHHS at aol.com
Sat Oct 29 08:08:39 PDT 2005
Legislature must fix prescription drug pricing
By Lynn Rolston and George Pennebaker
TWO of the seven measures on the special election ballot on
Nov. 8 are proposals that would create drug discount programs for the
uninsured. While there is no doubt that there is a tremendous need for programs and
benefits that reduce the cost of prescription drugs for all Americans and
that special consideration must be given to the uninsured, Propositions 78 and
79 are not the answer.
Indeed, the passage of one or both of these measures will only delay truly
meaningful efforts to address the problem.
The reality is that both Props. 78 and 79 are the products of a pitched
battle between consumer and labor groups on one side and the pharmaceutical
industry on the other.
Prop. 79 is sponsored by consumer groups and organized labor. While they are
serious about addressing the problem, they drafted 79 so that it presented
the most extreme threat to the pharmaceutical industry with the promise to
bring it to the electorate for a vote. The sponsors of Prop. 79 hoped that the
pharmaceutical industry would see it as so extreme that the industry would
negotiate a legislative compromise.
But the industry response was to propose its own ballot measure ñ Prop. 78,
a "voluntary" discount program. When the sides could not reach a compromise,
the electorate was left to choose between two measures that never would have
been the product of a sound policy discussion.
So what's wrong with the two measures? Let's start with Prop. 78. It would
create a discount program based solely on "voluntary" contributions from
pharmaceutical companies.
While we do not favor outright price controls, we do know that the industry
has had years to develop discount programs to address the access problem, and
that it has failed to do so. Why would this be any different?
And if it is different, it is probably because community pharmacies will be
expected to fill the huge gap left between consumer expectations and the
minimum contribution of the pharmaceutical industry.
In fact, Prop. 78 is modeled after the Ohio Best Rx discount program, where
more than 90 percent of the discounts
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have come directly from pharmacy. The pharmacists in California are
willing to do their part to improve access to prescription drugs.
However, we cannot and should not be expected to make up for the failure of
the pharmaceutical industry to do the right thing.
The problem with Prop. 79 is that it may never be implemented. While it
makes sense for the state to use its considerable purchasing power to get better
discounts from manufacturers, there is no question that the mechanisms for
doing so in Prop. 79 will become mired in litigation brought by the
pharmaceutical industry.
Other states that have taken a very similar approach have seen their
programs bogged down in the courts.
Furthermore, if Prop. 79 follows along the lines of the Maine Rx Plus
program,
100 percent of the discounts will be shouldered by pharmacy - not from
pharmaceutical manufacturers!
The creation of a meaningful, legally and fiscally sound drug discount
program should not be the subject of the initiative process. The Legislature must
take responsibility for fashioning such a program and must have the ability
to adjust it to respond to both market conditions and changes in federal
programs.
The very nature of initiatives prevents the Legislature from making
necessary changes.
As much as we want to provide the public with necessary medications at
affordable prices, Propositions 78 and 79 only provide false promises. Tell the
Legislature you want it to do its job and to do it right.
Lynn Rolston is the CEO of the California Pharmacists Association.
George Pennebaker is president of the
California Pharmacists Association.
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