Senator Deborah Ortiz
State Capitol, Room 5114
Sacramento , CA 95814
Fax (916) 323-2263
RE: AB 75 (Frommer, Chan) – SUPPORT
Dear Senator Ortiz:
The Asian & Pacific Islander American Health Forum writes in strong support of AB 75 (Frommer, Chan), which would create a prescription drug discount card program in California.
Assembly Bill 75 includes several key provisions that are critical to the success of a drug discount card program. Assembly Bill 75:
- Helps residents with high medical bills. Eligibility for AB 75 includes residents who earn less than 400% of the Federal Poverty Level, as well as those who spend a significant portion of their family earnings on medical expenses. Families who spend at least 5 percent of their family income on prescription drugs or 15 percent of their income on medical expenses would be eligible for the drug discount card under AB 75.
- Targets Medicaid Best Price as a benchmark for discounts from the drug companies . Assembly Bill 75 calls on DHS to seek discounts from the drug companies comparable to the discounts received by Medicaid. Given the complexity of pricing structures within the drug industry, many of which are controlled by drug companies, it is critical that a drug discount program target a well-known, recognizable benchmark for drug discounts.
- Permits, but does not require, Medicaid prior authorization if drug companies refuse to offer adequate discounts. AB 75 allows DHS to place a medication on “prior authorization” for Medi-Cal if a drug manufacturer fails to provide adequate discounts to the discount card program. As it has done in Maine, this provision will help to prevent drug companies from refusing to offer discounts through the drug discount program.
As prescription drug prices soar, more and more Californians are struggling to cover the costs of needed medications. Assembly Bill 75 would provide discounted drug prices to thousands of low-income and medically underinsured Californians. The bill closely resembles the groundbreaking legislation recently passed in Maine – Maine Rx – which the state has now implemented after successfully defeating a series of court challenges funded by the pharmaceutical industry. Maine Rx has succeeded in negotiated significant discounts from more than 20 major drug manufacturers.
We appreciate your support on AB 75 (Frommer) when it comes before you in the Senate Health committee.
Sincerely,
Ho Luong Tran, M.D., MPH
President and CEO
Asian and Pacific Islander American Health Forum
