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SAN FRANCISCO(AP) — The battle to give uninsured Californians access to cheaper prescription drugs has evolved into the most expensive initiative campaign in state history, with consumer groups and the pharmaceutical industry pushing dueling initiatives.
The industry sees the stakes as so high that it has raised $80 million to defeat Proposition 79, which would force companies to discount drugs for uninsured Californians. The industry, led by its lobbying outfit, the Pharmaceutical Research and Manufacturers of America, is supporting a competing measure that would make such a discount program voluntary.
In a David and Goliath scenario, consumer groups and labor unions have raised $10 million in the effort to promote their own initiative.
Analysts said the industry fears other states following California’s lead if Proposition 79 passes, potentially costing companies millions in profits.
“Pharma obviously sees this as a dangerous precedent,” said Bruce Cain, a University of California, Berkeley political scientist. “The money speaks to what is at stake for the drug industry.”
The union-backed Proposition 79 would provide discounted drugs to uninsured Californians making up to four times the federal poverty level. That’s about $38,000 for an individual and $77,000 for a family of four. The program would cover about 10 million people.
Under Proposition 79, pharmaceutical companies that don’t offer discounts can have their drugs dropped from a lucrative list of prescription medicines that doctors can prescribe to Medi-Cal patients without obtaining approval from the state. Unapproved drugs could only be reimbursed after filing paperwork and getting permission from the state.
Medi-Cal is the state and federal program that pays for health care for California’s poor and elderly residents. It spends $4 billion annually on drugs.
The industry sued Maine after it enacted a similar mandatory drug-discount program two years ago. The case reached the U.S. Supreme Court, which allowed Maine to start the program last year but left much of the state’s law unsettled.
That’s because Maine has not yet attempted to remove any drug from the preferred prescription list, a move the industry said it would likely challenge with another lawsuit.
The industry-backed Proposition 78 would be voluntary and would not punish companies declining to participate.
If passed, the measure would provide discounted drugs to uninsured Californians making up to three times the federal poverty level. That’s about $28,000 for an individual and $58,000 for a family of four. The program would cover about 5 million people.
A similar voluntary program is under way in Ohio, but most of the discounts there have come from pharmacies, not drug companies.
The uninsured pay higher prices for medicine because they don’t benefit from the discounts giant health care plans and state governments receive from drug companies.
“Americans pay more for prescription drugs than anywhere else in the world,” said Anthony Wright, head of the consumer group Health Access California and Proposition 79 campaign leader.
Under Proposition 79, individuals would be able to sue drug companies if they believe the company engages in illegal profiteering.
In the latest of the eight television advertisements the industry has aired statewide, the campaign targets the illegal profiteering provision, claiming “trial lawyers love Proposition 79.” It says the measure will invite “unlimited lawsuits.”
The drug industry has advertised heavily in newspapers, especially those targeting minority audiences. It also hired prominent political consultants, including liberal Democrat Willie Brown, the former Assembly speaker and San Francisco mayor.
“Education is the key to this campaign, and these are complicated policy issues,” said Proposition 78 spokeswoman Denise Davis. “We are running two campaigns.”
In contrast, the labor unions and consumer groups have aired one television commercial, leaving them with a campaign that is largely grassroots in nature. At one point, volunteers handed out fliers outside a showing of the film “The Constant Gardener.”
Polls have shown voters to be apathetic and confused.
Political analysts said when voters are confused about issues, endorsements become important. But neither side has won a popular backer that could single-handedly sway the election.
Gov. Arnold Schwarzenegger supports the industry-sponsored Proposition 78, but his popularity has plummeted this year. The American Association for the Advancement of Retired Persons, the powerful senior citizens’ lobby, supports Proposition 79, but it’s unclear how far its influence extends beyond the group’s 3.1 million members in California.
The pharmaceutical industry will benefit if voters remain confused, said Jack Pitney, a political scientist at Claremont McKenna College in Southern California.
“Confusion generally translates to a no vote,” he said. “I know very few people who can tell the difference between the two propositions, and I’m not sure I can.”
The industry sees the stakes as so high that it has raised $80 million to defeat Proposition 79, which would force companies to discount drugs for uninsured Californians. The industry, led by its lobbying outfit, the Pharmaceutical Research and Manufacturers of America, is supporting a competing measure that would make such a discount program voluntary.
In a David and Goliath scenario, consumer groups and labor unions have raised $10 million in the effort to promote their own initiative.
Analysts said the industry fears other states following California’s lead if Proposition 79 passes, potentially costing companies millions in profits.
“Pharma obviously sees this as a dangerous precedent,” said Bruce Cain, a University of California, Berkeley political scientist. “The money speaks to what is at stake for the drug industry.”
The union-backed Proposition 79 would provide discounted drugs to uninsured Californians making up to four times the federal poverty level. That’s about $38,000 for an individual and $77,000 for a family of four. The program would cover about 10 million people.
Under Proposition 79, pharmaceutical companies that don’t offer discounts can have their drugs dropped from a lucrative list of prescription medicines that doctors can prescribe to Medi-Cal patients without obtaining approval from the state. Unapproved drugs could only be reimbursed after filing paperwork and getting permission from the state.
Medi-Cal is the state and federal program that pays for health care for California’s poor and elderly residents. It spends $4 billion annually on drugs.
The industry sued Maine after it enacted a similar mandatory drug-discount program two years ago. The case reached the U.S. Supreme Court, which allowed Maine to start the program last year but left much of the state’s law unsettled.
That’s because Maine has not yet attempted to remove any drug from the preferred prescription list, a move the industry said it would likely challenge with another lawsuit.
The industry-backed Proposition 78 would be voluntary and would not punish companies declining to participate.
If passed, the measure would provide discounted drugs to uninsured Californians making up to three times the federal poverty level. That’s about $28,000 for an individual and $58,000 for a family of four. The program would cover about 5 million people.
A similar voluntary program is under way in Ohio, but most of the discounts there have come from pharmacies, not drug companies.
The uninsured pay higher prices for medicine because they don’t benefit from the discounts giant health care plans and state governments receive from drug companies.
“Americans pay more for prescription drugs than anywhere else in the world,” said Anthony Wright, head of the consumer group Health Access California and Proposition 79 campaign leader.
Under Proposition 79, individuals would be able to sue drug companies if they believe the company engages in illegal profiteering.
In the latest of the eight television advertisements the industry has aired statewide, the campaign targets the illegal profiteering provision, claiming “trial lawyers love Proposition 79.” It says the measure will invite “unlimited lawsuits.”
The drug industry has advertised heavily in newspapers, especially those targeting minority audiences. It also hired prominent political consultants, including liberal Democrat Willie Brown, the former Assembly speaker and San Francisco mayor.
“Education is the key to this campaign, and these are complicated policy issues,” said Proposition 78 spokeswoman Denise Davis. “We are running two campaigns.”
In contrast, the labor unions and consumer groups have aired one television commercial, leaving them with a campaign that is largely grassroots in nature. At one point, volunteers handed out fliers outside a showing of the film “The Constant Gardener.”
Polls have shown voters to be apathetic and confused.
Political analysts said when voters are confused about issues, endorsements become important. But neither side has won a popular backer that could single-handedly sway the election.
Gov. Arnold Schwarzenegger supports the industry-sponsored Proposition 78, but his popularity has plummeted this year. The American Association for the Advancement of Retired Persons, the powerful senior citizens’ lobby, supports Proposition 79, but it’s unclear how far its influence extends beyond the group’s 3.1 million members in California.
The pharmaceutical industry will benefit if voters remain confused, said Jack Pitney, a political scientist at Claremont McKenna College in Southern California.
“Confusion generally translates to a no vote,” he said. “I know very few people who can tell the difference between the two propositions, and I’m not sure I can.”
