Drug discount plan aimed at uninsured

By Harrison Sheppard
Sacramento Bureau

SACRAMENTO -- A prescription drug plan touted by Gov. Arnold Schwarzenegger would give 40 percent discounts on medications to 5 million uninsured, low-income Californians, his administration said Thursday.
Democrats and a coalition of health-care advocacy groups attacked the program as inadequate and ineffective. They are pushing a plan to help consumers import cheaper drugs from Canada, based on a bill Schwarzenegger vetoed last year because of safety and legal concerns.

The governor's California Rx plan calls for creating a discount-card program for uninsured residents living at or under 300 percent of the federal poverty level -- an income of $27,930 for individuals and $56,550 for a family of four.

The cost of the discounts would be shared between the pharmaceutical industry and drug stores. The discounted prices would be comparable to the lowest prices paid by any bulk commercial purchaser in California, the administration said.

"Gov. Schwarzenegger has made it a top priority to do all he can to make medicines more affordable and more available for uninsured low-income Californians," said Health and Human Services Secretary Kimberly Belshe.

But the program would be voluntary, prompting some health-care advocates and legislators to question whether enough pharmaceutical companies will participate to make it work.

Critics also noted that other states with similar programs apply them to people at 400 percent or 500 percent of the federal poverty level.

"We're not going to support something that is an empty gesture," said Assembly Majority Leader Dario Frommer, D-Glendale, author of a new Canadian drug importation bill. "We want to support a state assistance program that is going to bring meaningful relief for a lot of Californians. There's no way that his program will do that."

The Cal Rx plan includes the creation of a Web site clearinghouse that will help Californians enroll in various discount programs and direct them to where they can get the best prices.

The Pharmaceutical Researchers and Manufacturers Association has agreed to contribute $10 million to help market the program and create the Web site. The creation of the Web site does not require legislative approval. The state general fund will contribute about $4 million to administer the program.

Consumers who participate in the program will pay a $15 annual fee.

Groups supporting the plan include the California Medical Association, AARP and the California Pharmacists Association. Those criticizing or opposing it include the California Public Interest Research Group, Health Access California and the Senior Action Network.

---
Harrison Sheppard, (916) 446-6723 harrison.sheppard@dailynews.com