Three States create Regional Drug Buying Plan

By David Darman on Thursday, May 24, 2001.

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Yesterday, New Hampshire, Maine and Vermont announced that they were forming a multi-state prescription drug buying program. Officials say it will help lower prescription prices. NHPR's David Darman has more.

New Hampshire Governor Jeanne Shaheen joined Vermont Governor Howard Dean by telephone to announce that their two states and Maine were creating the Tri-State Prescription Drug Purchasing Pool. Governor Shaheen said the combination is aimed at skyrocketing prescription prices.

"By joining together, we're going to increase our purchasing power, and save state government and taxpayers money... By working together, we estimate we'll save between 10 and 15 percent a year on the costs of prescription drugs."

The program is designed to begin by covering more than three-hundred thousand Medicaid recipients in the three states. Activists for senior citizens and other interest groups said the discounts are certainly welcome. But Steve Blackledge of the New Hampshire Public Interest Research Group says the program does not go far enough.

"The governors' tri-state plan is a step in the right direction. It will lower the cost of drugs for many people in new Hampshire. But it's a baby step. It only covers those who are currently covered under Medicaid, and just a few, other, small populations."

The three states are forming the purchasing pool because high prescription rates are not being dealt with at the federal level. But Steven Findlay of the National Institute for Health Care Management says that inaction may change abruptly, since Vermont Senator Jim Jeffords has left the Republican party, leaving Democrats in charge of the US Senate.

"It's not that the Republicans haven't been interested in engaging in this issue, but, clearly the parties differ on their priorities and exactly how they want to go about reforming the health care system. Namely, a patients bill of rights, medicare drug benefit, and expanded coverage for the uninsured."

The Tri State Prescription Drug Purchasing Pool will begin operating on November first.

For NHPR news, I'm DD