In what promises to be the most confusing
issue on the special election ballot,
there are two competing initiatives that
promise to provide
prescription drug discounts.
One--Prop 79--was placed on the ballot
by Health Access California, with the
support of the CFT, other unions, and
consumer and senior groups. It would create
a prescription drug discount program that
would use the purchasing power of the
state of California to leverage discounts
from the drug companies. Its goal is to
cut soaring prescription drug prices for
consumers.
The other--Prop 78--was placed on the
ballot by the big pharmaceutical corporations,
with the specific intent to confuse voters
into opposing Prop 79. It would also create
a drug discount program, but would allow
the drug companies to voluntarily decide
whether to participate, and what drugs,
if any, for which they would provide discounts.
As of the middle of August, the drug
companies have already raised more than
$72 million to defeat Prop 79 and pass
Prop 78. If both measures get a majority,
the proposition with the higher vote total
will take effect.
Both measures would enable the Department
of Health Services to contract with pharmaceutical
corporations for a discount on drugs used
by Medi-Cal patients. Under each initiative,
the state would rebate retailers or pharmacists
the amount of the discount. The difference
is that under the drug companies' Prop
78, nothing requires the companies to
enter into the contract with the DHS.
Under Prop 79, if a company refuses to
participate, Medi-Cal will steer patients
to other equivalent drugs. This is a significant
incentive, since Medi-Cal reimbursed prescription
drug sales topped $4 billion last year.
Prop 79 would also provide deeper discounts
to twice as many Californians than the
drug companies' Prop 78. But the biggest
difference is that Prop 79 would enforce
those discounts, using the purchasing
power of the Medi-Cal program.
The drug companies are trying to protect
their ability to price-gouge Californians,
who now pay a higher retail price for
prescription drugs than residents of other
wealthy nations. It is precisely this
price-gouging by the drug corporations
at our expense that allows them to commit
$72 million to try to confuse and defeat
us.
Vote NO on Proposition 78. Vote Yes on
Proposition 79.
