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Just Say No to 78 (and Yes to 79)

Jesus Esquivel

Issue date: 10/26/05 Section: Opinion
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Like that "Dueling Banjos" song, Propositions 79 and 78 sound similar but they're really playing different tunes.

Both propositions would create a new discount drug program for uninsured Californians, and negotiate drug company rebates. But Prop. 79 would have federal regulations for pharmaceutical companies to follow while Prop. 78 would be more lassai-faire.

With Prop.79, companies would be penalized for not providing discounts. Where as with Prop.78 drug companies wouldn't have to provide a single discount and it's strongly backed by the pharmaceutical industry while Prop.79 is supported by labor and consumer groups.

Prop.79 would give bigger discounts to more people; 10 million, while Prop.78 would only cover 5 million.

With Prop.79, drug companies that disagree with the low prices can have their products removed from preferred status with Medi-Cal: doctors would still be able to prescribe the medicine; they'd just need to fill out more paperwork. With Prop.78, drug companies don't have to participate in the program at all.

Californians with incomes up to four times the federal poverty level (approximately $38,000 per person and $77,000 for a family of four) would qualify for a drug discount card with an annual fee of $10 under Prop.79.

Under Prop.78 Californians with incomes up to three times the federal poverty level (approximately $29,000 for one person and $58,000 for a family of four) would qualify for a drug discount card with an annual fee of $15.

Prop.79 would establish the Prescription Drug Advisory Board, which would monitor pharmaceutical companies in order to prohibit profiteering from drug sales.

In addition, Prop.79 would also establish a drug discount program for business and labor organizations that purchase medical coverage for their employees and members. Prop.78 has no similar provision.

Prop.78 has been accused of being a smokescreen set up by the pharmaceutical industry to stop Prop.79, which would set up stronger rules and regulations for pharmaceutical drug companies to follow.

In a way Prop.78 has already been given a chance in 2001, when California implemented the short lived Golden Bear State Pharmacy Assistant Program. More than 500 drug manufacturers were asked to participate and only 14 joined the program.

If California votes to establish a voluntary program on Nov. 8 it will simply be history repeating. If both propositions pass, the one with the most votes will be implemented.
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