Prescription Drug Corporations
We often hear how tough economic times are taking a toll on families, with many wage earners losing their jobs or having their hours reduced. But people aren’t the only ones being affected. State budgets are being hard hit, too, with some teetering on the brink of bankruptcy. This has caused leaders to come up with some pretty creative ways to balance their budgets.
Even states that aren’t about to go bust are taking steps to trim budgets to the bone, starting with payroll, one of state government’s biggest expenses. However, payroll cuts have not been enough to create balance. More is needed.
The battle over prescription drug prices
That’s why several state legislators have set their sights on bigger and better targets: prescription drug groups. Claiming they are manipulating the price that Medicaid recipients pay for drugs, some state governments hope to pump up their bottom lines by forcing drug companies to repay hundreds of millions of dollars they claim they overspent on Medicaid reimbursements.
That type of budget-balancer is easy enough for most of us to support, especially when you consider that the prescription drug market is a multi-billion dollar industry. It’s difficult to feel any sympathy towards these seemingly greedy groups that charge crazy prices for drugs that already cash-strapped governments and individuals have no choice but to pay.
Just the facts, please
But fortunately for the drug groups, that’s not the way the judicial system works. Feelings and emotions have no place in decisions. When in court, only the facts are considered. A perfect example occurred recently with a ruling by the Alabama Supreme Court.
Prior to hearing the case, it appeared the state of Alabama had scored a major victory against three big pharmaceutical giants AstraZeneca, Novartis and GlaxoSmithKline when a jury awarded the state $274 million in repayment.
The decision allowed the state to conduct its own research when deciding how much to pay pharmacists for Medicaid recipients’ prescription drugs. The decision meant that Alabama did not have to rely on information provided by drug companies when calculating payment. By conducting its own research to determine pricing, the state would be freed from overpaying for the drugs to which poor and elderly citizens are entitled under Medicaid.
But when the Alabama Supreme Court heard the case, it didn’t agree with the previous jury decision and overturned the ruling. As you’d imagine, drug company representatives were pleased with the outcome, fiercely defending their pricing practices and benchmark data used to set those prices.
This decision doesn’t mean the battle is over. In fact, it’s just beginning and Alabama isn’t the only state taking on pharmacy group giants.

Who will be the winners?
Will the ultimate winners be the states and their constituents? Or will be the side that has the most money to spend on legal fees be the victor? If history is a good predictor of the future, there’s a good chance states will have to find some other way to fund their budgets.
Please give us your opinion on this topic.
Labels: health care, medications online, prescription drugs, United States





