Healthy Skepticism Library item: 1725

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Publication type: news

Pallarito K.
Lawmakers pass resolution to press US Congress on lower drug prices
Reuters Health 2002 Mar 15

Full text:

ALBANY, New York (Reuters Health) – An association of state lawmakers today passed a resolution that, in part, urges Congress and the Bush administration to set a goal of low drug prices.

The Northeast Legislative Association on Prescription Drug Prices (NELA) attached the pricing language to a resolution calling on Washington to provide block grants to states to expand senior drug programs.

Some members of the eight-state organization raised concern that the resolution did not take advantage of the opportunity to address a key association concern: that policymakers should be doing something to lower the price of prescription drugs, not just expand access.

“The essence of this organization for me (is) for us to stand together…against the industry,” said Sen. Mark Montigny of Massachusetts. “This is absolutely an industry that’s been comfortable gouging the consumer, gouging the taxpayer.”

After lively debate, NELA members agreed to add language calling on Congress and the administration to “achieve maximum access to prescription drugs” by adopting as a goal the Federal Supply Schedule, Federal Ceiling Price or the Canadian price, “whichever is lower.”

Sen. Catherine Cook, a Connecticut Republican who presented the block grant resolution, did not favor the amendment. “I am concerned that we are dictating a price that’s going to float,” she said. But, she voted in favor of the resolution anyway.

The block grant resolution was developed in conjunction with Connecticut Rep. Nancy Johnson’s office to help put pressure on Congress to do something to help seniors get access to prescription drugs, Cook said. “While Congress is playing in the sandbox” instead of passing a prescription drug benefit for seniors, states need help now, she said in an interview with Reuters Health.

NELA members also agreed to move forward on developing a common preferred drug list. To streamline the process and avoid duplicative effort, the association intends to designate a single state to lead the effort. Other states then would have the option to “piggyback” on that state’s drug list, Vermont Sen. Peter Shumlin told Reuters Health.

At Friday’s meeting, members received a chart comparing the preferred drug lists of Florida, Maine, Michigan and Vermont. The chart showed that for selected therapeutic categories, there was quite a bit of agreement across the states on what drugs should be included.

“There are indeed a lot of similarities in state Medicaid programs,” said NELA Executive Director Cheryl Rivers. “That is very encouraging news…to try to move states toward cooperation on a preferred drug list,” she said.

Members also discussed legislation that the association has developed as a model for states to put the brakes on drug costs in their states. So far, Vermont is the only state to fully embrace all of the principles of that legislation. Its Senate has passed a bill that includes tough licensing and disclosure requirements opposed by industry. Other states were encouraged to follow Vermont’s lead.

“I think if we can take this model legislation and move it in more states, we will succeed” in lowering drug costs, said Shumlin, who sponsored the Vermont bill.

As part of a discussion on drug formulary and prior authorization requirements, Sen. Cook of Connecticut questioned members about what they are doing in the area of disease management. She cautioned that requiring prior authorization doesn’t adequately address the problem for the 5% of the population that generates 50% of drug costs.

Earlier in the day, Cook complained that “some of the people at this table only want to focus on the pharmacy silo.” She urged lawmakers to take a broader view, recognizing that pharmaceuticals can help avoid significant costs in other healthcare sectors.

Afterwards, she told Reuters Health, “They’re not focusing on disease management and their answers are very worrisome.”

Rep. Steve Constantino of Rhode Island also brought up purchasing inefficiencies as an area needing reform. In Rhode Island, the Department of Corrections, the Department of Mental Retardation and state hospitals “all purchase (prescription drugs) in different ways without one coordinating with the others.”

He added that there are times that the Department of Corrections “goes across the street to the neighborhood pharmacy and purchases drugs.”

Rivers reported that the association soon would be providing specifics on how member states may generate savings for their state employee health plans by taking advantage of a prescription drug purchasing program led by West Virginia. Any day now, West Virginia is expected to name a pharmacy benefits management company to run the program, which will be open to other drug buyers in other states.

“I would be very surprised if there wasn’t a very great opportunity for our states to save money,” she said.

NELA’s next meeting is tentatively slated for May 17 in Washington, DC.