Hawaii Rx Plus "fails" to negotiate discounts

A report by the Honolulu Advertiser claims that the US State of Hawaii's prescription drug discount program is "struggling," due to the administrators' inability to negotiate rebates from drugmakers. The issue mirrors the federal dispute between Republicans and Democrats over the alleged benefits of compelling the executive branch of government to negotiate directly with drug manufacturers (Marketletters passim).

The Hawaii Rx Plus scheme provides drug discounts to residents who do not qualify for Medicaid, have incomes less than three and a half times above the federal poverty line and are either uninsured or have insufficient coverage. State Governor Linda Lingle's Republican administration argues that the 112,000 residents are too few to provide the basis for significant discounts. The availability of cheaper generic drugs, sometimes at lower prices than the co-payments for insurance-covered branded product, may also explain why about 38,000 fewer people are enrolled in the scheme than in 2005. Democrats favor compelling the Governor to negotiate discounts with manufacturers.