Maine’s Department of Human Services, which oversees the state’s Medicaid program, figures generic drugs saved patients and, therefore, taxpayers about $15 million last year. Even more savings from using generics – more than $20 million – are expected this year. A U.S. Senate committee’s strong support yesterday of an amendment by Sen. Susan Collins and Sen. John Edwards of North Carolina to close loopholes in the current generic laws could make those savings significantly larger and make prescription drugs a lot more affordable for everyone.

The problem with the current law, known as the Hatch-Waxman Act, is that pharmaceutical companies can extend repeatedly the 30-month extensions they are granted on patents. This keeps generic alternatives off the shelves and consumers paying more for the brand-name drug. In one case, the profit from the current loophole was so great that when the producer of the heart medication Cardizem CD brought suit against a generic company, it didn’t look for damages but offered to pay the generic company more than $880 million to keep the lower-cost alternative off the market.

The Edwards-Collins legislation narrows the patent extension to a single 30-month stretch unless a judge specifically allows it to continue, lessens the possibility of paying a generic manufacturer to keep a drug off the market by limiting its exclusivity rights and reduces the incentive for brand-name drug manufacturers to file frivolous patents. The bill is fair to manufacturers and helpful for consumers, returning patents to the process envisioned under Hatch-Waxman.

The Health, Education, Labor and Pensions Committee yesterday voted 16-5 in favor of the Edwards-Collins amendment, sending the bill to the full Senate, which is expected to consider it starting Monday. Given the election-year gridlock that has accompanied all health bills, the evident support for the senators’ bipartisan amendment was a real victory. Politically for Sen. Collins, it is a strong response to Democratic opponent Chellie Pingree, who is running a campaign based largely on her health care record while in the state Senate.

The Edwards-Collins legislation could be joined next week in the Senate by a major reform to provide a drug benefit under Medicare. None of the three major proposals for the benefit has enough votes to avoid a filibuster, but a bi-partisan moderates’ plan stands the best chance, especially if the alternative Democratic plan fails to gain enough votes beforehand. Other amendments that can be expected next week are the various proposals for increasing Medicaid reimbursements to states.

While the outlook for the generics bill is positive, it isn’t clear whether the activity around the other health bills will produce anything but lengthy submissions to the Congressional Record. The success of Edwards-Collins, however, suggests that at least this essential component for reducing drug costs can be passed this summer.