US state Rx plan not legal, says court

The AWARDS (A Washington Alliance to Reduce prescription-DrugSpending) drug discount plan introduced by Washington state Governor Gary Locke has been struck down by a Superior Court Judge, who ruled that the state does not have the authority to implement the program, reports Reuters.

Judge Richard Strophy said Gov Locke's prescription drug buyers club, which covers about 5,000 state residents aged 55 and over without prescription drug coverage, has a laudable goal, but it is not legal.

Individuals pay $15 and families $25 for annual membership of AWARDS, which uses the pharmacy benefit manager and network of pharmacies run by the state employees' preferred provider organization to obtain discounts averaging 20%-25% on medications purchased through pharmacies, and bigger reductions on mail-order purchases. However, the Court ruled that the state Health Care Authority was not empowered to extend its contract with the PBM, Merck-Medco, to include the AWARDS program.