States Look at Laws to Curb Prescription Drug Costs, Wall Street Journal Reports
At least 40 states are considering legislation to "control soaring prescription drug prices," according to a new National Conference of State Legislatures survey , but budget constraints "are sinking" some efforts, the Wall Street Journal reports. Rising drug costs are creating "overruns" in states' Medicaid and employee benefit programs, "imperil[ing]" state budgets. New Mexico Gov. Gary Johnson (R) last week vetoed two prescription drug-related bills, saying that their $4.7 million cost "was too much for the state budget." One bill would have "greatly expanded" the number of people eligible for prescription drug discounts under Medicaid, and the other would have created a drug benefit for seniors.
'Unpleasant Year'
Richard Cauchi, NCSL's prescription drug project manager, said, "Fiscal concerns [in state budgets] do put at least something of a damper on the pace of [prescription drug coverage] bills." For example, in Missouri, which has been "struggling with declining tax revenue because of the slowing economy," the House last week approved a bill that would use tobacco settlement money and the elimination of an "unrelated" tax credit to cover the drug costs of seniors who pay a deductible and copayment. Gov. Bob Holden (D) has said he will sign the bill, but the Journal reports that it "faces an uncertain future in the Republican-controlled Senate." State Rep. Marc Abel (D), the bill's sponsor, said, "It hasn't been a pleasant year, budget-wise," adding that he hopes Congress will make the proposed Missouri program "superfluous" by passing a Medicare drug benefit (Gold, Wall Street Journal, 4/11).
