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What's New
Senate Bill 1 will allow Coloradans to save money on generic drugs. Governor Ritter signed this bill and an executive order to establish a preferred prescription drug list for Medicaid patients and to investigate our idea to join a multi-state buying pool for prescription drugs. The buying pool would allow Colorado to buy in bulk, like Costco or Sam's Club, and pass the savings onto consumers. Thank the Governor for signing these and to ask him to push for the buying pool.
How you can help
Take a moment to thank Governor Ritter for his leadership on this issue by sending an email.
Brief Summary
In the past five years, prescription drug costs have increased at more than twice the rate of inflation. With skyrocketing prescription drug prices, many Coloradans are forced to make the tough choice between drugs essential for their health and other basic necessities such as food or electricity.
One main reason for rising prices is that drug companies are abusing their power and influence to prevent cheaper, generic brands from entering the market, and therefore, are able to keep prices unfairly high. For example, the maker of Taxol, a breast cancer treatment, unlawfully blocked competition for three years after its patent expired. CoPIRG is taking action to stop this trend by working to support prescription drug buying pools.
Prescription drug buying pools have helped America's veterans, Californians, and Texans save millions of dollars every year. Individuals and small businesses that join buying pools use the power of their large group to drive down the prices of prescription drugs.
With a state-run buying pool, Colorado could use its significant buying power to demand lower drug prices (similar to what the federal government and big HMOs do), and pass those savings along to those who lack drug coverage. Specifically, this legislation would:
• Provide prescription drug coverage to Coloradans who lack it or are grossly underinsured, and encourage health professionals to help enroll participants;
• Give the state government the ability to negotiate substantial rebates from drug companies and discounts from retailers, then pass those savings along to participants; and
• Provide tools to help persuade drug companies to negotiate prices in good faith, including public disclosure of uncooperative companies. In addition, the legislation would close the loopholes that allow companies to block lower-priced generic versions of their drugs from reaching the marketplace.
Resources
CoPIRG Testimony on Prescription Drug Legislation HB 1252 4/26/06
Affordable Rx Drug Prices Fact Sheet
Save Money on Your Next Rx
