Maine’s drug pricing plan draws Washington state’s attention

OLYMPIA, Wash. – Emboldened by the legal success of a prescription drug discount program in Maine, state Senate leaders on Thursday proposed a similar program in Washington state.

The Maine law lets the state use its buying power to pressure drug companies into offering discounts to uninsured residents. Drug companies sued to stop the program, but last month the 1st U.S. Circuit Court of Appeals ruled that Maine’s law is constitutional.

“We tried earlier and frankly got nowhere,” said Sen. Pat Thibaudeau, chairwoman of the Washington Legislature’s Senate Health Committee, referring to a dozen prescription drug bills that died during this legislative session.

About one in four Washington residents does not have prescription drug coverage, said Senate Health Committee staff. Nationally, seniors spend an average of $1,200 a year for prescriptions, up from $559 in 1992.

Gov. Gary Locke’s approach – forcing pharmacies to offer discounts on prescriptions – was recently shot down by a Thurston County Superior Court judge. Legislators came to Olympia this January promising to help consumers with prescription drug expenses, but failed to pass any relevant bills.

Thibaudeau, a Seattle Democrat, and Sen. Alex Deccio of Yakima, the ranking Republican on the Senate Health Committee, say the prescription bills fell victim to a combination of budget pressures and concerted lobbying by the drug industry.

Thibaudeau said Maine’s legal success might give the Legislature the push it needs.

“We’re going to try, regardless of who is opposed to it,” she said. “We have a responsibility to try.”

The pharmaceutical industry will certainly oppose any attempt to enact a Maine-style program in Washington.

“We don’t think price controls are in the best interest of the patients,” said Cliff Webster, a Washington lobbyist for PhRMA, the Pharmaceutical Research and Manufacturers of America. “The Maine law insists that manufacturers sell their drugs in Maine at a certain price determined by the state.”

Sens. Thibaudeau and Deccio say they don’t expect the Legislature to act on their bill this year. Only 26 days remain in the Legislature’s second special session, and lawmakers are still working on budget and transportation plans. But the senators said they hope to start discussion, raise awareness, lobby their colleagues over the summer and get some action on prescription drugs next year.

“At least we’re putting something forward that has a little positive ring to it,” Deccio said. “If we don’t do anything, we’re part of the problem.”

Their bipartisan proposal, Senate Bill 6197, also includes a subsidized prescription drug insurance plan for seniors and the disabled. A bill with a similar subsidized insurance plan passed out of the Senate Health Committee this spring, but quickly died in the budget committee. It was doomed by the price tag: $22 million in 2002, $60.5 million in 2003 and $70.6 million in 2004.

Sponsors say enrollment in the subsidized program could be limited on a first-come, first-served basis to fit whatever budget they can get.

The new omnibus prescription bill would also require the state to develop a list of preferred drugs for people on state health programs in order to drive down drug costs. Prescription drug spending is increasing by about 15 percent each year, compared with a 5 percent increase for all other health care costs.