The Drug Lobby is Spending Historic Amounts to Block the Real Solution for Fair Drug Prices
 Prop. 78 is a smokescreen designed and bankrolled with over $75 million from the prescription drug lobby to block Prop. 79, a real discount solution put forward by consumer, health, and senior groups. Under their cynical strategy, if both measures get a majority, the one with the most votes becomes law.
Newspapers report that just one contribution from GlaxoSmithKleine for $8.5 million could be the "largest ever from a corporation to a California campaign." Drug companies have donated over $75 million which breaks the previous record for the most expensive initiative campaign in California history.
Jan Faiks, VP with PhRMA, the industry's lobbying arm, told the Los Angeles Times "the industry would spend 'whatever it takes' to defeat [Prop. 79]."
PROP. 78 RELIES ON MANUFACTURERS TO VOLUNTEER DISCOUNTS: A PLAN PROVEN TO FAIL
Prop. 78 relies on drug manufacturers to voluntarily lower their prices and does not allow the state of California to enforce the program.
California tried this voluntary approach in 2003. The Golden Bear State Pharmacy was designed to offer seniors voluntary discounts on prescription medications. More than 500 drug manufacturers were invited to participate, yet only 14 agreed. Unable to implement it successfully, Governor Schwarzenegger closed the program.
PROP. 78's DISCOUNTS CAN END AT ANY TIME
The drug lobby buried a provision in Prop. 78 that allows them to effectively close their discount program when too few manufacturers voluntarily lower their prices.
As stated in their initiative, Prop. 78 could end at any time if there are too few participating manufacturers, or insufficient discounts, or too few participating consumers.
Make no mistake, this provision was included by the drug companies so they can end the program at any time and protect their profit margins.
FEWER PEOPLE ARE ELIGIBLE, DISCOUNTS ARE LESS
Half as many Californians are eligible for discounts under Prop. 78 as under Prop. 79. Prop 78 provides no discounts to many uninsured Californians, those with catastrophic medical bills, and the chronically ill such as cancer and diabetes patients with inadequate drug coverage.
The discounts offered by Prop. 78 are based on the "lowest commercial price" set by the drug companies. These discounts could be anywhere from 15 to 40% - significantly less than Prop. 79's discounts.
VOTE NO on PROP. 78, a smokescreen by the pharmaceutical industry to block the real solution to high prices.
Instead, VOTE YES on PROP. 79 for fair prescription drug prices.
Proposition 78 Links:
Full text of Proposition 78
Comparison of Prop. 78 and Prop. 79
See the campaign contributions to Prop. 78
Watch "The Constant Gouger" trailer
Proposition 78 downloadable material
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