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

Countries covered: United States 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. Get the Answers You Need to Shape Your Strategy 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 benefit 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. Please note, the PDF e-mail from publisher version of this report is for a global site license.

Additional Information

Key Players Mentioned in This Spectrum Report:

American Medical
Association (AMA) AstraZeneca
Attorney General Kelly A.
Ayotte, New Hampshire Center for Public Policy
Centers for Medicare and
Medicaid Services (CMS) Congressional Budget
Offi ce (CBO) Eli Lilly
First Circuit Court of
Appeals, Boston GlaxoSmithKline
Governor John Lynch,
New Hampshire Homeland Security
Appropriations Bill of 2007 Judge Paul Barbadoro,
New Hampshire Medicine Equity and Drug
Safety Act of 2000 (MEDS Act) Medicare Part D
Medicare Prescription
Drug Act (MMA) National Conference on
State Legislatures (NCSL) National Do Not Call
Registry NH’s Prescription
Information Law Pfi zer
Pharmaceutical Market
Access and Drug Safety Act Pharmacy benefi t managers
(PBMs) Prescribing Data
Restriction Program (PDRP) Rep. Rahm Emanuel
(D-IL) Safe Importation of
Medical Products and Other Rx Therapies Act of 2004 Secretary of Health and
Human Services (HHS) Sen. Barack Obama (D-IL)
Sen. Byron Dorgan
(D-ND) Sen. Hillary Rodham
Clinton (D-NY) Sen. John McCain (R-AZ)
Sen. Olympia Snowe
(R-ME) State attorneys general
The Senior Citizens
League (TSCL) U.S. Customs and Border
Protection U.S. District Court, District
of New Hampshire U.S. House of
Representatives U.S. Senate
Wyeth

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