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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
To view report, click here...
CUTTING
DRUG COSTS: Different Approaches, Different Results
(Executive Summary)
To view report summary, click here...
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.
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