PHRMA BLASTS CALIFORNIA'S PROPOSED DRUG DISCOUNT PROGRAM

California's proposed prescription drug program wrongly imposes artificial price controls that could undermine future innovations, the drug industry says.

The bill, AB 2911, would establish the California Discount Prescription Drug Program, with the goal of reducing drug prices using manufacturer rebates and drug discounts. The bill passed the state Senate Aug. 29 and Gov. Arnold Schwarzenegger (R) is planning to sign it into law. "This plan is just what the doctor ordered for millions of low-income Californians who pay the most for their prescription drugs but can least afford them," Schwarzenegger said. "With prescription drug costs contributing to more than 8 percent of healthcare inflation, this is a critical step in addressing access to affordable healthcare. I look forward to receiving this bill and signing it into law."

But the drug industry claims that this program will do more harm than good. The bill's requirement that the state's Department of Health Services negotiate with manufacturers for lower prices "could chill the future search for new cures and treatments," PhRMA President and CEO Billy Tauzin said in a statement. The group has previously said that these controls reduce funding available for the R&D necessary to produce new treatments.

Instead of price controls, the group is recommending that patients turn to PhRMA's patient assistance program, the Partnership for Prescription Assistance. The program helps match patients with free or greatly discounted medicines.

The bill is available at www.leginfo.ca.gov/pub/bill/asm/ab_2901-2950/ab_2911_bill_20060830_enrolled.pdf (http://www.leginfo.ca.gov/pub/bill/asm/ab_2901-2950/ab_2911_bill_20060830_enrolled.pdf).