Posted by 25 August 2017
In November, Ohio voters will decide how much the state government should pay for drugs. They will be faced with Issue 2, entitled the “Drug Price Standards Initiative,” which is generating significant controversy. Passage of this initiative could either be great news for state taxpayers, or a boondoggle that will drive up drug prices for other Ohioans. Or perhaps it will be unenforceable. Those are a few of the competing claims being made about this initiative.
Issue 2 would prohibit the state from paying higher prices for drugs than the federal Veterans Administration (VA) pays. This would include not only the state Medicaid program, but also programs such as the Ohio Best Rx Program and the Ohio HIV Drug Assistance Program. The VA pays prices for prescription drugs that are around 20% less than other agencies.
Supporters of this initiative say that it has obvious benefits – the state will save significant amounts of money on its prescription drug payments. They also talk about the initiative as a way to curb the greed of pharmaceutical companies. Senator Bernie Sanders (I-VT) as well as a variety of Democratic state politicians and a few AIDS associations are the main supporters of the initiative.
There are a wide variety of groups opposing Issue 2, ranging from the national drug company trade association to groups of doctors and nurses to the Columbus NAACP to veterans’ organizations. They contend that drug companies will be forced to raise prices on other consumers, such as seniors and veterans, to make up for the lower prices dictated by the state.
Some critics also point out that if voters approve the initiative, then the state will be forced to spend money to defend it. A section in the measure gives private organizations the right to intervene if such suits occur and to be given taxpayer funding if they do. That also raises opponents’ ire.
The Ohio initiative is similar to one considered by California voters in 2016. That proposal, Proposition 61, went down to defeat by a margin of 53% to 47%.
Do you think that Issue 2 is a good way to control drug prices? Or will this approach lead to problems for other Ohio prescription drug consumers?