Overview
In the past five years, prescription drug costs have increased at more
than twice the rate of inflation. With skyrocketing prescription drug
prices, many Coloradans are forced to make the tough choice between
drugs essential for their health and other basic necessities such as
food or electricity.
One
main reason for rising prices is that drug companies are abusing their
power and influence to prevent cheaper, generic brands from entering
the market, and therefore, are able to keep prices unfairly high. For
example, the maker of Taxol, a breast cancer treatment, unlawfully
blocked competition for three years after its patent expired. CoPIRG is
taking action to stop this trend by working to support prescription
drug buying pools.
Prescription
drug buying pools have helped America's veterans, Californians, and
Texans save millions of dollars every year. Individuals and small
businesses that join buying pools use the power of their large group to
drive down the prices of prescription drugs.
With
a state-run buying pool, Colorado could use its significant buying
power to demand lower drug prices (similar to what the federal
government and big HMOs do), and pass those savings along to those who
lack drug coverage. Specifically, this legislation would:
• Provide prescription drug coverage to Coloradans who lack it or are
grossly underinsured, and encourage health professionals to help enroll
participants;
• Give the state government the ability to negotiate substantial
rebates from drug companies and discounts from retailers, then pass
those savings along to participants; and
• Provide tools to help persuade drug companies to negotiate prices in
good faith, including public disclosure of uncooperative companies. In
addition, the legislation would close the loopholes that allow
companies to block lower-priced generic versions of their drugs from
reaching the marketplace.
