US states faster than Congress on reforms

While the US Congress and the Bush Administration are still debating anational Medicare prescription drug benefit, 29 states have put into place programs that cut the cost of prescription medicines for seniors (Marketletters passim), according to the Los Angeles Times. The newspaper noted that legislation now being considered in 40 states would offer greater Medicaid discounts or increase the number of seniors eligible for price cuts.

Rising state Medicaid costs and a desire to help elderly people have motivated state legislators to move more quickly than Congress. In Oregon, for example, Medicaid costs are expected to rise 60% over the next two years, the LAT said.

After California passed a law that required pharmacies to take part in the state's Medicaid program to offer discounts to all seniors, the cost of an average prescription for this population dropped $8 to $32. The discounts, which took effect in February 2000, are paid for out of the pharmacies' mark-up, usually 20%, the newspaper explained, noting that Florida and Washington State have passed similar legislation.