Rx drug bill is a flawed remedy
Acetaminophen reigns as one of the most popular painkillers ever, despite sometimes getting bad press. (Dec. 19, 2011)
A drug war is happening right under our noses, a battle between mail-order pharmacies and the bricks-and-mortar kind. And we consumers could become the casualties, paying more for prescriptions.
Only Gov. Andrew M. Cuomo can stop this, by vetoing a bad bill or changing it to something less smelly.
The war started with a bill instigated by local pharmacies, who feel the hot breath of competition from the mail-order houses that many health plans encourage -- and in some cases require -- people to use. The mail-order drugs are usually cheaper, not only for the consumer, but for the health insurance plans. But community pharmacies argue that this is hurting them.
The bill they put forward passed both houses of the State Legislature months ago, but just arrived in the governor's office this week. If it becomes law, health plans regulated by the state would not be able to use incentives, like lower co-pays, to encourage the use of mail-order houses.
Opponents of this change argue that the bill would reduce the numbers of people using the mail-order services, which would make them weaker in bargaining with drug companies for lower prices. The Federal Trade Commission predicted: "By reducing competition between pharmacies, this legislation likely will raise prices for, and reduce access to, prescription drugs."
The critics have been hoping to get Cuomo to veto it, but with the huge majorities the bill enjoyed in both houses, a veto might well be overridden. Cuomo is reported to be willing to sign the bill, provided both houses pledge to pass amending legislation to correct its most vague and anti-competitive language.
As written, the bill says health plans must let members choose equally between the bricks-and-mortar pharmacies and mail-order houses, as long as the local store offers the drugs at "comparable" prices. That's way too vague. The amending legislation needs to clear that up and make sure the bill neither inhibits competition nor narrows consumer choices to buy drugs from the cheapest source.
In any case, government should not take sides and pick winners in a legitimate private-sector competition, as this bill would. Without the change, Cuomo should veto this anti-consumer, anti-competition legislation.
