State Activities: Impact on the U.S. Pharmaceutical Industry

This publication has been discontinued on December 21, 2011.

Introduction

Abstract

Introduction

In 2005, 17% of the nation' s $2 trillion in health care costs was paid by state and local governments, including more than $21.7 billion for prescription drugs; these costs are expected to double over the next ten years. Determined to protect state budgets without cutting essential health care services, state legislatures are enacting laws intended to lower drug costs by regulating the health care and prescription drug industries.

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As drug costs continue to rise, state legislatures become increasingly proactive, enacting legislation intended to contain costs and to create new kinds of local health care initiatives-and taking legal action against pharmaceutical companies over issues of drug pricing and safety. Can pharmaceutical companies turn this situation around? How can companies adjust their marketing strategies to the requirements of increasingly vigilant national and state governments? In the current environment of distrust, are there opportunities for companies to build mutually benefi cially relationships with the states? In the proliferation of state initiatives in many areas of health care, are there any that may benefi t pharmaceutical companies?

Scope

• Issues addressed by state legislatures: drug pricing, drug reimportation, patient/prescriber privacy, electronic medical records, stem cell funding, life sciences research, HPV vaccination, universal health care
• 2007 state legislation: most active states, bills fi led, most frequently targeted pharmaceutical-related issues
• Programs initiated by states: evidence-based medicine initiatives, Pennsylvania PACE Program, Oregonbased Drug Effectiveness Review Project, the Prescription Project, child health insurance programs, drug purchase assistance, state-funded life sciences research initiatives
• Prescription data protection: New Hampshire prescription information law, AMA prescribing data restriction program
• Electronic health records: State Alliance for e-health, individual state initiatives, National Health Information Network
• State legal actions against pharmaceutical companies: companies targeted, plaintiff states, nature of complaints, settlements awarded

Table of Contents

• Executive Summary
  • Strategic Considerations
  • Stakeholder Implications
• State Legislatures Taking Action Against Serious Drug Concerns
  • 2007 State Legislative Bills
• Northern States Push for Drug Reimportation
  • Political Maneuverings Create “Poison Pills”
  • Vested Interests: Politicians, Lobbyists, and Patients
  • Effects of Looming Presidential and Congressional Elections
• Battle Lines Drawn Over Access to Prescriber-Identifi able Prescription Data
  • New Hampshire' s Prescription Information Law
  • AMA National Prescribing Data Restriction Program
• Electronic Health Records-Interoperability, Transparency, and Accountability for All
  • National Health Information Network
  • State Alliance for e-Health
• State Attorneys General Not Afraid to Litigate
  • State Antitrust Enforcement
  • Average Wholesale Price Manipulations and State Litigation
• Educating Physicians: Evidence-Based Medicine and Counter-Detailing
  • Pennsylvania' s PACE Program
  • The Drug Effectiveness Review Project
  • The Prescription Project
• States Are Funding Research That Benefi ts the Pharma Industry
  • Economic Development Through State Life Sciences Initiatives
  • Stem Cell Funding Initiatives
• Access to Affordable Medicines
  • State Children' s Health Insurance Program
  • State Pharmaceutical Assistance Programs
  • States Push for Generics
  • Industry' s Helping Hand
• Mandatory Human Papillomavirus Vaccine Legislation
  • Just Another Cancer Drug or First-Ever Vaccine?
  • A New Challenge for Pharmaceutical Companies
• State-Sponsored Universal Health Care
  • States Taking the Lead on Universal Health Care
  • Businesses Attempt Health Care Reform
• Capturing the Future

Figures

• 1. Factors Contributing to Total Prescription Drug Spending Growth, 1988-2016
• 2. United States Expenditures on Prescription Drugs, 2000, 2005, and 2016
• 3. Prescription Drug State Legislation, 2007
• 4. Drug Reimportation Timeline: Politics, Patients' Rights, and Pharmaceutical Industry Lobbying
• 5. Timeline of Select Stem Cell Research Activities in Different States, 2000-2007
• 6. SCHIP Funds: Allocation Versus Spending, 1998-2007
• 7. State Pharmaceutical Assistance Programs, 2006
• 8. Health Insurance Premiums, Percentage Increase, 1996-2006
• 9. Status of State Initiatives for Health Care Reform

Sidebars

• New Hampshire House Bill 1346-An Act requiring certain persons to keep the contents of prescriptions confi dential (excerpt)
• Human Papillomavirus, Cancer, and Sexually Transmitted Disease

Tables

• 1. State e-Health Initiatives-Channels for Creating Health Information Technology Networks, 2007
• 2. States Take Legal Action Against Pharmaceutical Companies
• 3. Relative Advantages of Life Sciences Clusters in Three States, 2002
• Appendix-State Drug Assistance Programs, 2007

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