Court clears way to reduce prices on prescriptions
By Lynda Arakawa
Advertiser Capitol Bureau
The U.S. Supreme Court yesterday ruled that a state may try to force companies to lower prices on prescription drugs for the poor and uninsured. The court's 6-3 decision would let a novel prescription-drug program take effect in Maine, and local advocates say it paves the way for a similar program to move forward in Hawai'i.
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But it's unclear whether Gov. Linda Lingle will approve the money critical to set up such a program after expressing concerns there may be other legal challenges.
"We don't want to set up a program that's going to be challenged as soon as it gets up and running," Gov. Linda Lingle said.
The program, called Hawai'i Rx, was approved by the Legislature last year and is modeled after Maine's law. It would create a purchasing pool that would negotiate discounts with drug manufacturers on behalf of those in the pool. Hawai'i Rx members would then be able to buy those drugs at local participating pharmacies at those discounted prices.
Supporters say it would provide relief to about 220,000 Hawai'i residents who do not have prescription-drug coverage. Hawai'i and Maine are the only two states with such a law.
The architects of the bill, Rep. Roy Takumi and Sen. Ron Menor, as well as the AARP Hawai'i, said the court ruling is a major victory for consumers and called on Lingle to release $200,000 appropriated to hire a consultant to explore ways to run the program.
They said until the plans are finalized it is difficult to predict the discounts consumers will receive as well as how much money, if any, the program would cost the state. But they said consumers can reasonably expect discounts of about 20 percent to 40 percent, depending on the drug. Those savings could increase if Hawai'i joins a purchasing pool with other states, they said.
"This is really a tremendous breakthrough in Hawai'i's ability to move forward," said Greg Marchildon, state director of AARP Hawai'i, which advocates on behalf of retired people.
Takumi, D-36th (Pearl City, Palisades) said: "There is no legal impediment whatsoever for the Hawai'i Rx program for us to move forward. The only thing that's the impediment is the political will to do it."
But Lingle would not comment about releasing the $200,000 or the court ruling and noted the decision was not a sweeping endorsement of the Maine program.
The ruling said only that drug makers did not adequately show why the Maine plan should be blocked.
Lingle said she was concerned that the ruling also doesn't prevent lawsuits from being filed, which could stop the program again.
"That is a problem," she said. "We don't want to set up a program that's going to be challenged as soon as it gets up and running."
Lingle said that's why her administration is developing its own Prescription Care Hawai'i program in which needy patients at state hospitals and Hawai'i Primary Care Association clinics would be given help applying for free prescription drugs.
Lingle also said she created a task force including both Democrats and Republicans to look at how to reduce prescription-drug costs.
But Menor, D-17th (Mililani, Waipi'o), said while he commends Lingle's efforts, her plan is only complementary to, and not a substitute for, the Hawai'i Rx program.
Menor also said the threat of a lawsuit should not discourage the state from starting a program to benefit Hawai'i consumers.
Marchildon said of the pharmaceutical companies: "The wind has really been significantly taken out of their sails."
The Associated Press contributed to this report.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 525-8070.
