Posted on: Friday, January 25, 2002

Retiree groups, unions support drug-cost bills

By Bruce Dunford
Associated Press

Retiree organizations and unions lined up yesterday behind state lawmakers and Lt. Gov. Mazie Hirono who want action this year to sharply reduce the cost of prescription drugs, especially for Hawai'i's estimated 220,000 elderly and poor who lack drug insurance coverage.

Rep. Roy Takumi (D-Pearl City-Waipahu), said bills will be introduced in the House and Senate to set up a state-sponsored bulk buying club to leverage discounts in the range of 15 to 20 percent from drug manufacturers.

A majority of states are moving to curb the soaring costs of prescription drugs.

Hirono said getting drug prices reduced will have an impact on many Hawai'i's residents, especially those living on fixed incomes.

"For some of them, they are having to decide whether or not they want to continue their health or buy food," she said.

Hirono said her own experience demonstrates the problem faced by many.

"My mother and I take the same drug, but because I have a prescription drug coverage, I just pay $15 in co-payment. My mother pays $75 for the same drug, because she has no drug coverage," Hirono said.

Greg Marchildon of AARP said the legislation will address a critical need in Hawai'i.

"The drug companies are going to do everything they can to make it not a reality," he said. "Nationally last year, they spent over $300 million to defeat similar legislation in state houses across the county. They have very deep pockets and they will do what they can to stop this legislation."

Takumi said the drug companies have hired a number of lobbyists to oppose the legislation and likely would challenge any state law in court, as they did against Maine. That case is headed to the U.S. Supreme Court.

The drug industry is worried about the effect of states combining their buying power.