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REPORTS

Cutting Drug Costs: Different Approaches, Different Results Evaluating the effectiveness of voluntary and "carrot and stick" state drug discount programs in Ohio and Maine (September 2005)

Cutting Drug Costs: Additional Details and Revised Data (10/14/05) These materials further explain the findings in the September 2005 report and contain revised charts with drug pricing and discount data, replacing charts B2,D,E,F,G and H, and adding Chart J comparing the value of the Maine and Ohio discounts.

CUTTING DRUG COSTS: Different Approaches, Different Results
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CUTTING DRUG COSTS: Different Approaches, Different Results (Executive Summary)
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This study compares and evaluates the effectiveness of Maine Rx Plus and Ohio's Best Rx drug discount, looking at July 2005 prices for 36 commonly prescribed prescription drugs. We find that the "carrot and stick" Maine Rx Plus Program is more effective for more Maine citizens than the purely voluntary approach of Ohio's Best Rx is for Ohioans. On average, drugs purchased through the Maine program are 10% less than in the Ohio program, and generic drugs purchased in pharmacies average 30% less. We also find that more residents are eligible for benefits in Maine than in Ohio, and the state has done a better job signing them up and providing wrap around coverage through Maine Rx Plus. Our study also compares the discounts available in these programs with international pharmacy prices, as well as the Federal Supply Schedule. Our report finds that the legal questions raised by the pharmaceutical industry about Maine Rx Plus are sufficiently resolved, and resolved in Maine's favor, that states should not be deterred from modeling their state discount drug programs on Maine Rx Plus on those grounds.