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ALTERNATIVES
Newsletter of the Center for Policy Alternatives

 

 


State Legislators, Community Groups and Labor Push for Fair Prescription Drug Prices

   

On June 20, state legislators, union officials and community leaders announced legislative efforts to lower prescription drug prices. A highlight of these simultaneous state press conferences organized by CPA was the model Maine Rx Plan, which allows the state to negotiate discounts for its 325,000 residents who do not have prescription drug coverage. 

"There is real momentum building behind this innovative, no cost to taxpayers solution to the problem of escalating drug prices," said Ann Beaudry, CEO of the Center for Policy Alternatives. "It uses market forces to address a serious health crisis in America. 

"Currently over 70 million Americans—one in four—don’t have health insurance covering prescription drugs, including 18 million seniors on Medicare and 12 million children. These vulnerable individuals without coverage don’t have any market clout and thus pay exorbitantly high prices—as much as 50%more than an HMO or the Medicaid program, and over twice as much as the Departments of Defense or Veterans Affairs for exactly the same drugs. State legislators are realizing they can use the state’s market clout, by pooling their uninsured residents and negotiating discounts and rebates on their behalf. 

In contrast to the partisan gridlock in Congress, the prescription drug fair pricing legislation gained over-whelming bipartisan support in Maine. CPA is providing other state legislators and grassroots organizations with valuable resources to start their own efforts to bring down the high cost of prescription drugs. 

"We’re seeing this same type of bipartisan support in other states," Beaudry said. "This is landmark legislation. It’s an example of good public policy meets good politics—an innovative solution that has received very strong public support." 

Legislation to lower prescription drug prices has been or will be introduced in: AL, AZ, CT, FL, GA,IA, IL, MD, MI, MN, MO, NC, NY, PA, SC, VT,WA, and WI.

CPA coordinated a national press conference in Washington, D.C. in support of state efforts for lower prescription drug prices and increase access. Speakers included: Ann Beaudry, CEO of the Center for Policy Alternatives; Gerry Shea, Assistant to AFL-CIO President John Sweeney; Maine State Senator and Majority Leader Chellie Pingree, primary sponsor of the Maine bill; Joe Ervin, National Council of Senior Citizens; and Ron Pollack, Executive Director of Families USA. 

To find more about state efforts to lower prescription drug prices, contact Bernie Horn, CPA Policy Director at (202) 956-5135.

StateAction.org Links:

 

  July-August 2000
  Vol. 8, No. 5
 
ALTERNATIVES

Alternatives is a publication of the Center for Policy Alternatives – a nonpartisan progressive public policy and leadership development center serving state legislators, state policy organizations, and state grassroots leaders. Alternatives is indexed in Urban Affairs Abstracts. ISSN #1070-3047

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