Most New Yorkers rarely get a glimpse into the ways of Albany. And while poll after poll documents voters’ growing unhappiness with state government, most have no idea how Albany’s dysfunction directly affects their lives.
The 2006 session offered an eye-opening example. The skyrocketing cost of prescription drugs is an important issue to millions of New Yorkers – and tens of millions of Americans. Nearly 3 million New Yorkers have no health insurance. Many more lack prescription drug coverage if they have insurance and most pay a deductible for their medicines.
So you would think that lawmakers would be seeking ways to reduce the cost of prescription drugs. It is, after all, an issue of great importance, and for some people it is an issue of life and death.
Unfortunately, legislation designed to reduce the cost of prescription drugs was blocked in the State Senate this past session. The proposal was a casualty of Albany’s dysfunction.
The legislation allowed the state to create a “prescription drugs buying pool.” Essentially, the state would pool all of its drug purchasing power for the millions of New Yorkers who get their medicine through the state – public employees, Medicaid beneficiaries, low- income seniors and other low-income families. The state would then negotiate with the drug companies – meaning that if the companies wanted New York business, they would have to offer discounts.
The savings would be used to offer drug coverage to those who do not have it.
In addition, the program would be offered to employers. If they wanted to be part of the program and reduce their health costs, they would access medicines for their employees at the same low price.
By adding these companies and the uninsured, the state’s buying pool would get bigger. These increased numbers would increase the state’s leverage with the drug companies, which would mean even more money saved.
The legislation is modeled on similar programs run by states and some federal agencies, most notably the Veterans Administration. The VA’s negotiations with the drug companies are so successful that on average the VA pays half the cost of prescription drugs sold in New York pharmacies.
Makes sense, right? It is the notion that every consumer already knows, you buy in bulk and you save.
The only problem is, of course, the drug companies. They hate the idea. They know that the savings eat into their considerable profits.
So the drug companies began to mobilize. They knew that if the legislation were put to a vote, it would pass with wide margins. So their plan was to go directly to the Senate and the Assembly leadership and try to block a public debate on the issue. They hired scores of lobbyists and funneled campaign contributions.
In the Assembly, the drug companies’ efforts failed. The bill passed with an overwhelming bipartisan majority.
But in the Senate, they succeeded. The drug companies went directly to Senator Bruno and his top staff and were able to block the issue from coming up for a vote.
As a result, the Senate’s opposition to a vote on this issue could cost New Yorkers hundreds of millions of dollars.
But there is hope. The Senate may return to consider issues before the November elections. It’s time for New Yorkers to demand that lawmakers show their support for a smarter approach to government. An approach that will save money and help improve the public’s health.
So far the Senate has chosen to side with the drug companies. We’ll soon see if they decide to stick with them through the election.
By Blair Horner on June 27, 2006, 9:11 am
In category: Eye on Albany
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