New York Times Profiles Maine’s Drug Discount Programs

The New York Times on May 11 profiled two prescription drug discount programs -- Maine Rx and Healthy Maine Prescriptions -- in Maine, a state where the "political rebellion against the soaring cost of prescription drugs ... may be at its peak." The two programs have a "heavy focus on controlling the cost of drugs, rather than simply creating a new government drug benefit," which has prompted lawsuits from the pharmaceutical industry to block the programs. A summary of the programs and related industry lawsuits appears below (Toner, New York Times, 5/11).

• Maine Rx, approved in May 2000, would allow the state to serve as a pharmacy benefit manager for Maine's 325,000 residents without prescription drug coverage. Under the program, the state would negotiate with pharmaceutical companies for rebates on prescription drugs equal to or larger than those set by federal law for the Medicaid program. The state would pass the rebate to pharmacies, which would offer a discount to Maine Rx enrollees (Kaiser Daily Health Policy Report, 8/3/01). The Pharmaceutical Research and Manufacturers of America has challenged the constitutionality of Maine Rx in court, alleging that the program violates interstate commerce laws (New York Times, 5/11). PhRMA filed suit in November 2000 to block Maine Rx, but a federal appeals court upheld the program in a decision issued last May. PhRMA has appealed the case to the U.S. Supreme Court (Kaiser Daily Health Policy Report, 8/3/01).
• The Healthy Maine program, launched last June, uses a federal Medicaid waiver to offer prescription drug discounts to non-Medicaid beneficiaries. The program provides discounts of as much as 25% on prescription drugs for about 108,000 uninsured Maine residents with incomes less than 300% of the federal poverty level who do not qualify for Medicaid. Although PhRMA filed suit to block Healthy Maine, a federal court upheld the program in February (Kaiser Daily Health Policy Report, 2/26).