Pennsylvania Bill Would Allow State to Join Seven Others in Rx Drug-Buying Coalition

Pennsylvania Senate Minority Whip Michael O'Pake (D) introduced legislation yesterday to adopt a plan proposed last week by the Northeast Legislative Association on Prescription Drug Prices to negotiate discount prices with drug makers, the Philadelphia Inquirer reports (Wiggins, Philadelphia Inquirer, 8/8). Under the proposal, a coalition of eight states would pool their purchasing power to "extract large price concessions from drug companies" and provide discounts to Medicaid beneficiaries and some state residents not covered by public health programs (Kaiser Daily Health Policy Report, 7/30). The purchasing pool would include publicly funded prescription drug programs and private health plans that decided to participate. In addition, the coalition would promote the use of generic drugs and authorize "limited-use" drugs. "Buy in bulk and you get discounted prices," O'Pake said, adding, "The only way to get to the hearts and minds of drug manufacturers is to grab them by the wallets."

PhRMA Speaks Out
However, Pharmaceutical Research and Manufacturers of America officials have "questioned" the proposal, pointing out that the focus on generic drugs may prevent patients from receiving "medicine that is most effective for them." Marjorie Powell, PhRMA assistant general counsel, said, "It's not only a hard sell (to constituents), but we think its bad medicine." She added that the group opposes including drugs purchased through Medicaid in the program. "If states are proposing to put Medicaid into the same purchasing pool, we would have some concerns, because Medicaid comes with federal requirements and already gets the best manufacturer prices," Powell said (Philadelphia Inquirer, 8/8). For further information on state health policy in Pennsylvania, visit State Health Facts Online.