Congress has been stymied for three years in trying to add prescription drug benefits to Medicare, but Ohio could soon lead the nation in providing such benefits to seniors, the uninsured and working poor.
A plan called "Ohio's Best Rx," the result of negotiations between a consumers' coalition and drug manufacturers, appears to be on the fast track in the Ohio General Assembly. Hearings have begun, and supporters say it could pass within a few weeks. If the proposal lives up to its billing, it could be a win-win for Ohio, lowering drug costs for 1.7 million residents with minimal administrative cost to the state. One advocacy group says Ohio's Best Rx would provide the best discounts in the nation among non-government-funded plans.
That sounds great, but lawmakers must make sure the program is set up with rigorous oversight to make sure the public's bests interest are being served, and that the process by which the plan is administered is open for the public to see.
The plan's crafters also must work out potential conflicts with a program Gov. Bob Taft rolled out recently, the Golden Buckeye Prescription Drug Discount Card for seniors. According to state officials, the card has provided an average 20.5 percent discount during its first month.
Ohio's Best Rx would reach a broader population and would work differently - through rebates to the state from drug makers. It would apply to all Ohioans age 60 and older, plus all uninsured Ohioans with incomes less than 250 percent of the federal poverty level. They would get discounts of between 25 percent and 40 percent. Prices would be determined by the Department of Jobs and Family Services, based on drug prices in state employees' and retirees' plans. Participation is voluntary for drug firms, but those who don't participate will find it much harder to get access to state employee plans.
The proposal is similar to legislation that Democratic lawmakers have sponsored recently, so it would be a rare win for the minority party. Much of the credit would go to the coalition of labor unions, seniors' groups and others that has put pressure on the state and industry. If the bill becomes law, the coalition will withdraw a ballot initiative on the plan.
One major problem: The coalition says it won't play ball if lawmakers change details of the agreement. That's too inflexible; no group ought to demand that a legislature elected by the people become a rubber stamp. Lawmakers and pharmacists have raised valid concerns about how the plan's proposed 12-member review board would work - and what information it would make public. A clause to exclude pharmaceutical "trade secrets" could cause mischief.
Still, the plan could help many families burdened by drug costs without burdening Ohio taxpayers. For the very poor, prescription assistance already is available through an existing voluntary program by drug firms (www.rxforohio.com) .
The new plan would be voluntary. It could encourage lower prices and efficiency, unlike the Medicare Rx plan that has evolved in Congress - a massive government entitlement that will do nothing to foster free-market competition and could result in millions of seniors being dropped from private plans.
Ohio's Best Rx appears to be a smarter way to go, and it could become a model for the nation.
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