Pooling drug purchases increases leverage and bargaining power to negotiate lower drug prices. State purchasing pools may include several programs in one state (such as Medicaid, elderly assistance, state employees, workers? compensation) or one or more programs in several states.. States have also enacted discount drug programs aimed at expanding access to affordable medicines. Discount programs and purchasing pools vary widely in effectiveness; some drug industry-supported plans are little more than marketing tools for brand-name drugs. NLARx is working with state legislators to establish effective purchasing pools and discount plans that (1) give states the tools they need to leverage the best prices through preferred drug lists and the option of placing drugs on a list for prior authorization if manufacturers refuse to provide sufficient discounts; (2) combine a sufficient number of programs and persons in the pool to leverage the best prices; (3) provide benefits to most citizens without other drug coverage with a minimum of red tape and hoops to jump through; and (4) avoid the costs of using a middleman vendor or pharmacy benefit manager to negotiate prices, thus retaining the full value of rebates and control over data.

Researching this Issue

Model laws and best practices, testimony supporting these initiatives, and background information and research materials including reports, court decisions in the Maine Rx case, and news articles are posted here. Other relevant materials may be found on the issue pages relating to Preferred Drug Lists, which includes information on the most appropriate design of a PDL and on the Medicaid & Medicare page. Information on the Pharma Watch page details drug industry tactics and spending on lobbying, fake grassroots groups and ballot initiatives intended to thwart state efforts to establish drug discount programs and purchasing pools similar to Maine Rx Plus. See also the Related Links below to connect to other organizations and materials relevant to this issue.

Model Legislation
Oct 04, 2006
Preferred Drugs Lists Model Legislation|>>more
Aug 01, 2005
Maine Rx Plus|>>more
Jun 10, 2004
District of Columbia AccessRx|>>more
>>view all Model Legislation
Apr 28, 2005
Maine LD 1324: Cost Management Council|>>more
Related News
Jul 06, 2010
Group Purchasers, Devices And Innovation|>>more
Apr 06, 2010
The Wall Street Journal
Sebelius Warns of Health-Insurance Scam|>>more
Mar 22, 2010
US Senate Panel Commences Drug Pricing Probe|>>more
>>view all News
Feb 11, 2008
A Consumer Guide to State Health Reform|>>more
Jan 28, 2008
Kaiser Daily Health Policy Report Highlights Health Issues in State of the State Addresses|>>more
Jan 28, 2008
New York Governor Proposes Prescription Drug Initiatives in Budget|>>more
>>view all Reports
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