Prescription drug discount program is good medicine
Published 2:20 pm Thursday, April 5, 2007
Everyone should have a chance at a healthy life, regardless of income level and ability to afford prescription drug coverage.
That’s what makes the Oregon House’s passage of a measure to expand Oregon’s prescription drug discount program all the more timely.
The bill passed the House on Wednesday with a unanimous 57-0 vote and now returns to the Senate for action on an amendment. Following the Governor’s signature, which is all but set in stone, it will take effect immediately.
For Oregonians who lack basic insurance coverage for prescription medications, this move by lawmakers is a godsend.
According to the AARP, manufacturers’ prices for the 193 prescription drugs most commonly used by U.S. residents, ages 50 and older, increased at about twice the rate of inflation in 2006. The organization reports that average drug prices since the end of 1999 have increased by nearly 54 percent, while overall inflation increased by 20 percent.
AARP is among those organizations that have advocated for low-income and senior citizens by strongly supporting the mass bargaining power of large organizations, such as Medicare or state governments.
Without this legislation, it would be far more likely the number of Oregonians going without necessary medicine would continue to grow as people are forced to choose between the basics of food, shelter and life-saving drugs.
Interestingly, the response from the pharmaceutical industry is almost laughable. The industry disputes the AARP’s report. Citing its own findings, it says increases in prescription drug spending has slowed and retail drug prices increased by a mere 1.5 percent in 2006.
But who can really blame the pharmaceutical industry for dodging the AARP’s findings? If you ran one of these companies wouldn’t you want to keep the money flowing?
In 2002, the top-10 drug companies in the United States produced a median profit margin of 17 percent, compared with only 3.1 percent for all the other industries on the Fortune 500 list.
But this legislation isn’t about sticking it to the rich pharmaceutical companies. It’s about showing compassion for the little guy.
If signed into law, this measure will build upon a ballot measure voters passed last November. That measure makes the drug discounts available to anyone without prescription drug coverage, regardless of age or income, including about 576,000 uninsured Oregonians.
The measure the House passed will expand that pool further by allowing small businesses and labor unions to buy prescription drugs for their employees through the program.
About 12,000 Oregonians already participate in the program, which started in 2003 to serve low-income senior citizens.
Oregonians who have already enrolled in the program have saved an average of $28 per prescription.