State eyes drug plan for poor and uninsured By Rebecca Vesely, STAFF WRITER State officials said discounts would start at 40 percent off the price, and perhaps go higher. "Negotiations have already begun, and we already have some preliminary agreements," said state Health and Human Services Secretary Kim Belshe at a news conference. Called California Rx, the program would allow those with incomes up to 300 percent of the federal poverty level to obtain the discounts at their local pharmacies. Individuals with annual incomes of up to $27,930 and families of four with incomes of up to $56,500 would qualify. To get the program up and running, the trade group for pharmaceutical companies, the Pharmaceutical Researchers and Manufacturers Association, has committed $10 million over the next two years to create and market a Web site that will act as a clearinghouse for discounts negotiated by the state and discounts drug companies already offer to low-income patients, Belshe said. Consumers would be able to sign up for the program through pharmacies, a physician's office or the Internet. The California Medical Association, AARP and the California Pharmacists Association are backing the plan. "We support the result and we think this is the fastest way to get there," said Jack Lewin, CEO of the California Medical Association. But critics said a voluntary program won't provide significant savings. "We need to put some sort of hammer behind this so it's not just this vague commitment," said Anthony Wright, executive director of Health Access California, a consumer health coalition. Also of concern is industry confidentiality about drug pricing. Drug companies will be asked to volunteer that information. "It's a discount off the price yet we don't know what the price is in the first place," Wright said. Belshe said she did not yet know how much savings the program would yield. About $4 million in state general funds will go toward implementing California Rx and securing discounts, she said. State Sen. Deborah Ortiz, D-Sacramento, chair of the Senate Health Committee, is co-sponsoring the legislation needed to implement the program. Ortiz sponsored legislation last year as part of a package of reimportation bills that the governor vetoed in September. Ortiz said despite that setback, there was no time to waste in getting discounted drugs to the uninsured. "Our job as elected officials is to try to find some common ground," she said. Ralph Silber, executive director of the Alameda Health Consortium, a network of clinics that serve low-income people throughout Alameda County, said any relief in overall pharmacy expenses would be welcomed. "The problem of providing pharmacy coverage to the uninsured is very severe," he said. "We're talking about necessary prescriptions for people with diabetes, high cholesterol and mental health problems." Although most major drug companies offer drug assistance programs to low-income uninsured, the administrative costs of participation are high, Silber said, expressing concern that the new program would be more red tape. It's also unclear whether the governor's program will offer savings in off-label generic drugs, which community clinics serving the uninsured most often prescribe to their patients. Generic drugs are cheaper, but the overall costs add up for patients, Silber said. "Any little bit of savings helps, but my guess is that this doesn't do anything to solve that part of the problem," Silber said. Contact Rebecca Vesely at rvesely@angnewspapers.com. |