| The Columbus Dispatch
A state panel of government, business and consumer advocates on Monday released sweeping recommendations aimed at reducing consumer drug prices, saving tax dollars and ensuring that Ohioans have access to the medications they need.
The Prescription Drug Transparency and Affordability Council called for a single contract for purchasing prescription drugs for state and local government employees in Ohio, tighter regulations on pharmacy benefit managers who oversee prescription benefits for insurers, and paying closer attention to racial disparities.
Many of the six recommendations will require legislative action.
The 13-member panel approved the report during an online meeting after removing one of the most significant proposals: establishing a state-specific pricing index for medications.
“We’re putting out a recommendation here without any understanding of what would need to be done and how it would be performed,” said Ryan Augsburger, director of public policy for the Ohio Manufacturers’ Association. He joined several members in calling to strip the proposal from a draft report written by staff and presented to the panel Friday for review.
Department of Administrative Services Director Matt Damschroder, who chaired the 13-member panel, suggested members revisit the proposal as they continue quarterly meetings to consider additional recommendations.
Medicaid Director Maureen Corcoran said the drug-pricing index “is a huge, huge issue and it gets to the heart of the concerns raised here in Ohio … I’d hate to see the entire issue set aside.”
Supporters say an Ohio-specific index would provide greater transparency and ensure drug prices are based on actual costs, saving money for consumers, employers and insurers. It also would impact the entire drug supply chain, including manufacturers, wholesalers, pharmacists, insurers and consumers.
Pat Tiberi, president and CEO of the Ohio Business Roundtable, said the panel simply did not spend enough time on the issue.
“We spent one hour of one meeting on this and it seems to be a pretty big deal,” the former GOP congressman said.
The state alone spends $3.5 billion a year on prescription drugs for state employees, injured workers, Medicaid beneficiaries, prison inmates and others. Medications are purchased by various state agencies including the department of Medicaid, Mental Health and Bureau of Workers’ Compensation
As Ohio continues to wrestle with skyrocketing prescription drug costs, lawmakers created the council to recommend policies that help cut costs for consumers, save taxpayers’ money, improve transparency and create efficiencies across health care systems.
“I like the breadth of the recommendations and I think they do a very nice job of articulating a vision,” Corcoran told the panel.
A single purchasing contract for state and local government employees would replace the hundreds of contracts now negotiated across public entities. For instance, currently the state of Ohio can only bid for services and benefits for state employees and their families.
“A single plan that combines individual entities’ purchasing power would yield greater savings with a larger pool of covered individuals. Such a plan would require strict oversight and transparency to uphold the best interests of Ohio patients and taxpayers,” the report found.
The panel also recommended a single statewide drug formulary — a list of medications covered under a medical plan — to leverage the combined purchasing power of all government entities.
In addition, the panel pushed for ways to save consumers money, including expanding the use of discount coupons for medications and allowing drug rebates paid to insurers and employers to be shared with consumers.
Members also urged policymakers to consider long-standing health inequities involving minorities and the poor.
“It is important for policymakers to consider health equity across the racial and socioeconomic spectrums,” the report said.
@ccandisky
