New York State moves closer to lower drug prices

Feb 28 2007

It's a lot easier to negotiate a better price on something when you buy in volume -- that's the approach the State Assembly is hoping the state will take when buying its prescription drugs.

Today, the Assembly Health Committee passed key legislation moving New York State closer to a new law allowing the state to negotiate lower drug prices by buying in bulk and using some of the savings to create an Rx discount card for people in need.

"This is a simple piece of legislation that could yield major savings and create better access to prescription drugs for all New Yorkers and AARP commends Assemblyman Gottfried for his leadership on this issue," said Lois Aronstein, AARP New York State Director. "New York has the opportunity to both negotiate better drug prices and help people afford their medicines; this legislation does just that."

The bill, A.3848, sponsored by Assemblyman Richard Gottfried (D- Manhattan), would allow the state to better leverage its purchasing power and negotiate better prices by buying prescription drugs in bulk. The bill would also create a prescription drug discount card for all New Yorkers, especially those who lack or have gaps in their drug coverage, including people in the Medicare doughnut hole. This legislation passed the Assembly last year; however, under heavy pressure from the drug industry, the Senate failed to pass the bill.

"It's time for New York State to get smarter about buying its prescription drugs," added Aronstein. "Last year, the drug industry worked hard to defeat this legislation and they were successful, but this year the entire legislature has a new chance to do the right thing and pass this bill. AARP is urging them to take it."

Similar legislation has been introduced in the New York State Senate by Senator Martin Golden (R-Brooklyn) and is supported by AARP.

AARP New York is also advocating for legislation to reform prescription drug marketing practices used to promote prescribing expensive brand drugs when less expensive generic drugs may be just as effective. The bills would expose drug company gifts to doctors and ban drug companies from buying information regarding which drugs doctors are prescribing.