Health Care & Prescription Drugs News

SACRAMENTO—Members of the OURx Bill of Rights Coalition gathered in the state Capitol this morning to applaud Governor Schwarzenegger’s signature of AB 2911 (Núñez/Perata), the California Discount Prescription Drug Program. The coalition, comprised of more than a dozen groups representing consumers, the AIDS community, seniors and communities of color, sponsored the bill in the legislature this year.

“This effort began more than 4 years ago with a small group of OURx members and has blossomed into real reform for millions of Californians,” said Michael Weinstein, President of the AIDS Healthcare Foundation.

The creation of the California Discount Prescription Drug Program and Governor Schwarzenegger’s signature follow several previous attempts to lower prescription drug costs that were stalled by the aggressive opposition of the pharmaceutical industry.

“The pharmaceutical industry has fought tooth and nail to stop programs like this all across the country, said Emily Clayton, Health Care Advocate with CALPIRG. “Today’s signature represents not only real discounts on medicine for more than 5 million Californians, but also a strong statement to the pharmaceutical industry that states are ready to fight back against astronomically high prices.”

The legislation is a compromise between two competing ballot measures (Prop 78 and Prop 79) from last fall’s special election. AB 2911 gives drug companies three years to voluntarily offer discounts for California’s low-income uninsured. If, after three years, companies are not offering adequate discounts, the state may, just as all large insurers do, use the weight of its $4 billion Medi-Cal purchasing power to induce discounts.

“This landmark legislation allows the state of California to use its massive bargaining power to negotiate for the best possible price for its residents, getting a price similar to what big insurers and other governments get.” said Anthony Wright, executive director, Health Access California. “California’s action will have national implications, both showing that the drug companies are not invincible, and promoting the idea that government should be allowed to negotiate on behalf of its residents.”

While the plan is expected to benefit between five and six million low-income Californians of all backgrounds, many coalition members cited its particular benefits for specific constituencies.

“This new program will help low income seniors who have lost access to their drugs in the new Medicare Part D plan, or have found themselves in the donut hole and forced to pay out of pocket,” said Nan Brasmer, President of the California Alliance for Retired Americans.

“While rising prescription drug costs impact all Californians without sufficient health coverage, Latinos are 50% more likely than whites to not purchase or skip medication due to their inability to afford prescription drugs,” said Lupe Alonzo-Diaz, Executive Director of the Latino Coalition for a Healthy California. “We thank the governor for his leadership and commitment to increasing access to quality and affordable prescription drugs for all Californians.”

The legislation is part of a larger package of reforms supported by the coalition. In the coming year, member organizations will reintroduce legislation to address drug safety issues like those raised by Vioxx, public-sector prescription drug purchases and coverage for low-income seniors disadvantaged by the Medicare Part D program.