The adoption of single-payer health care systems are being encouraged at the state level, in the hopes of influencing federal policy. However, some very important information about the influence of the rx cos. and rx costs has come to light.
According to a report by the Center for Public Integrity, Big Rx has been spending tens of millions of dollars on lobbying, campaign donations and gifts to try to state officials to not pass laws that would cut into their profits.
Over $44 million lobbying state governments was spent in 2003 and 2004, according to the center. In addition, over $8 million to state political candidates/groups was spent for meals, golf tournaments and baseball games for some public officials.
continued
Ken Johnson, of PhRMA
“State legislatures have considered punitive measures that could have damaged physician-patient relationships and jeopardized the future development of potentially life-saving and life-enhancing medicines.”
PhRMA, in its 2003-04 annual report, claimed victory for Medicaid changes in Kansas, Maryland, New Jersey, New York, North Carolina, South Carolina and Washington.
Not counting what the states do pay for their employees, retirees, prison inmates, Medicaid have paid approximately 16% of the rx costs. In response to this, 2/3 of the states have passed legislation that includes buying medicine in bulk, promoting generic drugs, and creating lists of preferred drugs covered by state plans.
Roberta Baskin, executive director of the Center for Public Integrity:
“At the same time that the pharmaceutical industry has been splurging millions of dollars to influence state legislature and drug prices, they’re celebrating enormous profits. The losers, of course, are American consumers who continue to pay some of the highest prices for prescription drugs anywhere in the world.”
The concentration of rx lobbying occurred in states with the largest number of rx drug dollars and in states like New Jersey and Indiana, as the rx industry had a large presence.
California had approximately 20% of all lobbying expenses as it has the largest rx drug budget of all of the states.
In Massachusetts, state Sen. Mark Montigny claims the rx industry has blocked industry for blocking legislation to allow bulk purchasing. Montigny further stated,
“There’s no close second in terms of their effectiveness.”
With this in mind, would a state-by-state approach to health care reform that includes rx coverage be at all effective?
