Rx Discount Card for the Uninsured
New Dem Play | Lowering prescription drug prices for the uninsured
Where It's Working | Arizona, Arkansas, Colorado, Hawaii, Illinois, Kansas, Maine, Michigan, New Mexico, Ohio, Oregon, Rhode Island, Tennessee, Vermont, Washington, West Virginia, Wisconsin
Players | Governors and state legislators
More Health Care Plays
|
When it comes to prescription drugs, Americans without health insurance are disadvantaged twice over. First, they lack the insurance coverage to pay for the drugs. As a result, adults without insurance are half as likely to get the benefits of prescription drugs as insured adults, according to the Kaiser Family Foundation. Second, they pay higher prices than anyone else. The uninsured pay 18 percent to 25 percent more for all prescription drugs on average than the insured. They do not get the group discounts that health insurance plans get when they negotiate with drug companies.
The best long-term solution for the uninsured is to make certain that everyone has health care coverage (See Affordable Health Care Coverage for All.) A near-term approach is for states to negotiate group discounts on behalf of the uninsured. In such a scenario, the uninsured get access to the discounts by enrolling and using a discount card at participating pharmacies and mail order services. At least 17 states have established such a program.
One of the first states to do so was Arizona. In her first act as governor, Janet Napolitano (D) created the CoppeRx Card. It was originally intended for seniors. The CoppeRx Card enables residents to save on average 20 percent on brand name drugs and 55 percent on generic drugs. In 2006, it was then expanded to all Arizonians including the uninsured. It has saved Arizona consumers upwards of $15 million.
|
"We all know people who at one time or another have delayed filling a prescription, taken less medication than the doctor prescribed or didn't fill a prescription at all because of cost. Today, we make the cost of prescription medications for hundreds of thousands of Coloradans more affordable."
-- Gov. Bill Ritter, Colorado |
In 2007, Colorado Gov. Bill Ritter (D-Colorado) signed a bill that creates the Colorado Cares Rx Program, sponsored by Sen. Bob Hagedorn (D) and Rep. Alice Madden (D). The state of Colorado will negotiate drug prices with drug manufacturers, and pass these savings onto the uninsured. To qualify, uninsured Colorado residents must earn no more than three times the poverty level.
This program will enable about 264,000 eligible Colorado residents to gain access to discounted medications. Uninsured individuals who do not qualify for state aid will be able to obtain discounts on almost 10,000 generic prescription drugs. In a similar program, Arizona's CoppeRx card has produced an average of 40 percent savings over retail prices for generic drugs.
A discount card is a great opportunity to add other features. For individuals who obtain prescriptions from multiple pharmacies, the card program can provide an additional safety check in detecting medication-related problems, such as drug interactions. The discount card also is a convenient way for consumers to obtain information about the prices and uses of prescription drugs.
A discount card is just one of many strategies for lowering prescription drug prices and improving the safe and effective use of prescription drugs. Another helpful service that states should promote is Consumer Reports' Best Buy Drugs. This website offers good, practical advice for cutting drug costs, without sacrificing quality. Please see the DLC model initiative on Restraining Prescription Drug Costs.
With prescription drugs rising in importance to people's health and in overall costs, it's critical that state governments do all they can to protect uninsured residents.
Resources for Action
Arizona CoppeRx Card, Governor Janet Napolitano's Site
http://azgovernor.gov/coppercard/index.asp
"Gov. Ritter Signs First Bill, Creates Prescription Drug Plan"
Governor Bill Ritter's Site, February 5, 2007
http://www.colorado.gov/governor/press/february07/drug-plan.html
Colorado Cares Rx Act
http://www.leg.state.co.us/clics/clics2007a/csl.nsf/
fsbillcont3/2424C1625828F61C87257251007B6DF1?
open&file=001_enr.pdf
Consumer Reports Best Buy Drugs
http://crbestbuydrugs.org/
"Restraining Prescription Drug Costs"
DLC Model Initiatives, July 22, 2006
http://ndol.org/ndol_ci.cfm?kaid=139&subid=275&contentid=253949
NACo Prescription Drug Discount Card Program
http://www.naco.org/drugcard
Additional Reading
"Prescription Drug Trends"
Kaiser Family Foundation, June 2006
http://www.kff.org/rxdrugs/upload/3057-05.pdf
"Report to the President on Prescription Drug Coverage, Spending, Utilization, and Prices"
Department of Health and Human Services, April 2000
http://aspe.hhs.gov/health/reports/drugstudy/
"Restraining Prescription Drug Costs," DLC Model Initiatives, July 27, 2007
http://www.ppionline.org/ppi_ci.cfm?contentid=252651
&knlgAreaID=111&subsecid=900033
Contacts
Sen. Bob Hagedorn
Colorado State Senate
200 E. Colfax
Denver, CO 80203
(303) 866-4879
E-mail: senbob@msn.com
David Kendall
Senior Fellow for Health Policy
Progressive Policy Institute
4021 Heritage Way
Missoula, MT 59802
(406) 543-2265
E-mail: dkendall@ppionline.org