Kulongoski urges expansion of prescription drug program

SALEM, Ore.–Gov. Ted Kulongoski pressed lawmakers on Tuesday to expand the state’s bulk-purchasing program for prescription medication so Oregon businesses can enroll their employees in the cost-saving drug cooperative.

The Oregon Prescription Drug program allows Oregonians with no health coverage to get discounted rates on drugs that the state buys at wholesale prices. Members get an average of $28 savings on each prescription filled, but the savings could increase as more people join.

“We know that bulk purchasing delivers real savings for Oregonians,” Kulongoski said. “Our next step is to expand eligibility for the program so that we can boost our purchasing power and help more Oregonians access discounts on their prescription drugs.”

Oregon’s bulk-purchasing pool was created in 2003 to serve low-income senior citizens but the program was expanded last November after voters overwhelmingly approved ballot Measure 44, which allows any Oregon resident without prescription drug coverage to participate.

Under Kulongoski’s proposal, employers would sign up for the plan and employees would be eligible for the same discounted savings that current members receive.

“What this does is give consumers and businesses more options to find the lowest prices for the drugs,” said Laura Etherton, a consumer advocate for the Oregon State Public Interest Research Group. “The opportunities to save people money on prescription drugs are endless.”

The initiative is expected to provide incentives for companies to join because the cooperative will be able to bargain for lower prices than many companies can negotiate independently.

The program already helps about 12,000 Oregonians, such as Patricia Stotler, a 59-year-old former secretary who was diagnosed with chronic fatigue syndrome in 1996. Stotler, who takes three medications for her disability, said that after joining the program a year ago, her annual prescription medication costs of $500 were cut in half.

Health-care advocates say the new legislation will help businesses and consumers save money, but House Republicans who stymied similar legislation in 2005 expressed skepticism.

“Whether the program will ever achieve that critical mass, where the pull is big enough and they really see savings, that remains to be seen,” said Nick Smith, a spokesman for House Minority Leader Wayne Scott, R-Canby.

Missy Dolan, the program’s administrator, said the program’s membership might hit 100,000 within the year, even without Kulongoski’s proposed expansion.

Jake Weigler, a spokesman for the governor’s office, said it was difficult to predict how many people would join the program if Kulongoski’s bill passed, but he said he expected thousands of businesses would participate.

An agreement between Oregon and Washington announced last July could significantly reduce prices further, creating a potential pool of 6 million people that offers savings up to 60 percent, according to the governor’s office.

“By working together and pooling our purchasing power we can cut costs and expand access to life-saving medicines for citizens in Oregon and Washington,” Kulongoski said.