here are two prescription drug measures on the ballot: Proposition 78, sponsored by drug companies and Proposition 79, sponsored by consumer, senior and health organizations.

The pharmaceutical industry has pledged to spend “whatever it takes” to defeat Prop. 79, launching what could be the most expensive initiative campaign in California history. Here’s why:  

Prop. 79: Enforceable, Not Voluntary, Discounts By Drug Companies

Prop. 78 is completely voluntary for drug companies: they are free to choose whether or not to offer discounts. California has tried a voluntary drug discount plan before. The pharmaceutical industry refused to participate so the program dissolved in 2003.

Prop. 79 has an enforcement mechanism. If a drug company refuses to provide discounts, the state can shift business away from that company and buy more from other drug companies that offer discounts. 

Prop. 79: Discounts to Twice as Many Californians

Between 8 and 10 million Californians will be eligible for discounts under Prop. 79 – twice as many as under Prop. 78, including:

• Californians with catastrophic medical expenses who spend at least five percent of their income on medical expenses;
• The uninsured who earn up to 400 percent of the Federal Poverty Level ($64,360 for a family of three);
• Californians on Medicare for drug costs not fully covered by Medicare;
• Seniors, the chronically ill and others with inadequate drug coverage through private insurers or their employer.

Prop. 79: California Would Use Its Purchasing Power to Get The Best Price

Americans pay more for their prescriptions than consumers in many wealthy nations, in part because these other governments negotiate discounts from the drug industry on behalf of their citizens.

California does something similar through Medi-Cal, negotiating discounts of 50 percent and more, saving taxpayers $5 billion in the last 10 years. Prop. 79 builds on this success, using the same mechanism to negotiate these discounts for eligible Californians. As a result, consumers will pay less out of their own pockets for prescriptions at the expense of the drug companies, not taxpayers.

Under Prop. 79, eligible Californians would get a drug discount card to present to their pharmacist to receive discounts of up to 50 percent or more.

Prop 79: Would Save Patients, Taxpayers and Employers Money

By making affordable drugs more accessible to more people than Prop. 78, fewer people would fall onto Medi-Cal or other public programs, and need to use taxpayer-funded emergency rooms. Prop. 79 can reduce employers' health premiums by authorizing a new purchasing pool to reduce drug prices for employer-paid coverage.

Prop. 79: Backed by Health, Senior and Consumer Advocacy Organizations

Dozens of health, senior and consumer advocacy groups representing thousands of Californians are supporting Proposition 79. These groups include: Health Access California, Consumers Union, California Association of Retired Americans and the League of Women Voters.

---

Proposition 78 vs. Proposition 79
A Smokescreen vs. A Genuine Prescription Drug Discount Card Program
- Downloadable Format - (MS Word Doc)

California voters will choose between two ballot measures in the November Special Election to create a drug discount card for Californians.

If both measures get a majority, then the one with more votes is the one that will be implemented. The choice is clear: Proposition 78 is a smokescreen designed by the drug industry to fail, Proposition 79 is a genuine approach by health and consumer advocates that will provide deeper, enforceable discounts to twice as many Californians.

	Proposition 78	Proposition 79
SPONSORS Who supports it?	The prescription drug industry, which has pledged to spend “whatever it takes” defeat Prop. 79 with what could be the most expensive initiative campaign in California history.	California health, senior, and consumer groups including Consumers Union, California Alliance for Retired Americans, League of Women Voters, Health Access California, and dozens of others.
ENFORCEMENT Does it hold drug companies accountable for providing discounts?	NO. Prop. 78 relies entirely on drug companies to voluntarily providing discounts and does not allow the state of California to enforce the discount program. California tried this voluntary approach before, the drug companies refused to participate so in 2001 the program was closed. Under Prop. 78, if the drug companies do not provide sufficient discounts, the program can end at any time.	YES. Prop. 79 has an enforcement mechanism. If a drug company refuses to provide discounts, the state can shift business away from that company and buy more from other drug companies that do offer discounts.
ELIGIBILITY Does it provide discounts for those with high medical bills? Working families without insurance?	4-5 Million Californians. 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.	8-10 Million Californians. Prop. 79 includes Californians with catastrophic medical expenses who spend at least five percent of their income on medical expenses; the uninsured who earn up to 400 percent of the Federal Poverty Level ($64,360 for a family of three); Medicare recipients, seniors, and the chronically ill with inadequate drug coverage
DISCOUNTS Does it target a real discount price for consumers?	NO. The discounts offered by Prop. 78 are based on the “lowest commercial price” set by the drug companies, which are subject to change at any time.	YES. Prop. 79 builds on Medi-Cal’s success, using the same mechanism to negotiate discounts of 50 percent or more for eligible Californians. As a result, consumers will pay less out of their own pockets for prescriptions at the expense of the drug companies, not taxpayers.