An Analysis of Proposition 79 Television Ad

Associated Press

Thursday, September 8, 2005

Among the eight initiatives on California's Nov. 8 special election ballot are dueling measures designed to provide discount prescription drugs to California's uninsured - propositions 78 and 79.

Proposition 78 is supported by the drug industry and its chief lobbyist, the Pharmaceutical Research and Manufacturers of America. Backers released the second in a series of ads over the weekend.

The measure would create a discount program for those making up to three times the federal poverty level - about $28,000 for an individual and $58,000 for a family of four. The program would cover about 5 million people but would allow companies to participate voluntarily.

The world's largest drug companies have amassed $72 million to promote the measure and oppose its rival, Proposition 79, which is supported by labor unions and consumer groups.

The second measure would cover about 10 million people by providing discounted drugs to those making up to four times the federal poverty level - about $38,000 for an individual and $77,000 for a family of four.

It also would punish drug companies participating in the state's Medicaid program who fail to provide the discounts by making it more difficult for doctors to prescribe their products.

Proposition 79 supporters have received about $10 million in contributions but so far have declined to reveal their plans for television advertising. Campaign records show the Proposition 79 campaign paid a political advertising producer $3.2 million.

If voters approve both propositions, the one receiving the most votes takes effect.

Here is an analysis of the second television ad supporting Proposition 78 and opposing Proposition 79 that has begun airing in California.

_ Title: "Did You Know."

_ Length: 30 seconds.

_ Airing: Began Wednesday in all California markets.

_ Dominant images: Shot of Capitol dome in Sacramento and an actor portraying a "bureaucrat" stamping "rejected" on forms.

_ Script:

Narrator: Did you know the prescription drug initiative Proposition 79 creates an expensive new Sacramento bureaucracy?

Did you know with 79, Sacramento bureaucrats could deny patients access to medicine their doctor prescribes?

And did you know 79 could jeopardize as much as $480 million a year in drug rebates for California, leaving taxpayers to make up the difference.

The more you know the more you'll see: Proposition 79 is the wrong prescription for California.

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Analysis:

The pharmaceutical industry is expected to spend much of the $72 million it has raised so far on television commercials such as this.

The 30-second spot airing throughout the state hammers away at the industry's biggest theme: the proposition will create a new, burdensome bureaucracy that will give Sacramento bean counters veto power over the doctor-patient drug prescribing relationship.

The ad shows various shots of the state Capitol and an actor portraying a "bureaucrat" who is presumably rejecting doctor-approved prescriptions.

The ad claims that Proposition 79 will create a "costly new bureaucracy" and cause some patients to lose access to prescription drugs.

It's certainly true that a new bureaucracy called the Prescription Drug Advisory Board will be created to negotiate drug discounts. The Legislative Analyst's office predicts the cost to taxpayers to "range in the low tens of millions of dollars annually."

However, the commercial fails to mention that the industry-backed Proposition 78 would also create a new bureaucracy whose costs will "probably range from the millions to low tens of millions annually."

Also, if Proposition 79 passes, doctors can still prescribe a noncompliant company's drug despite the ad's warning. But that drug would be removed from a "preferred list," and doctors would be required to fill out more paperwork to prescribe it.

It seems doubtful doctors won't prescribe medicines vital to their patients' health because of extra paper work.

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Analysis by AP Biotechnology Writer Paul Elias.