Panel Debates State, Federal Roles in Prescription Drug Costs on NPR

A panel of health policy experts -- James Frogue of the Heritage Foundation, John Rother of the AARP, and Richard Cauchi of the National Conference of State Legislatures -- discussed the debate over state and federal responsibility for prescription drug coverage yesterday on NPR's "The Diane Rehm Show." Rother said that the combination of new drugs and higher prices lies behind high prescription drug costs, noting that seniors are "particularly hard hit" because they buy "most of the drugs." Cauchi said that 20 states have some sort of subsidy program to assist residents, primarily seniors and the disabled, with prescription drugs; including non-subsidy programs, 26 states have some sort of prescription drug assistance program, which has been "fairly successful for that particular constituency." Cauchi noted that tobacco settlement funding has made program expansion possible and that some state efforts to cut costs not only benefit seniors but also allow the state to get the best prices for state employees. "So although the states are interested in what is going on in Washington, there is also some independent action," he said. But Frogue said that "the best way to solve this problem isn't for the states to act individually. ... It is a federal problem, and Medicare needs to be reformed appropriately. The fact that the states have to act at all shows that Congress has failed to reform Medicare." Rother added, "The problem with prescription drugs is that it takes real resources to do this, and the states don't necessarily have those resources, so I think ultimately this will need to be a federal solution" (Rehm, "The Diane Rehm Show," NPR, 4/25).