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California State 2005 - Proposition 78 Discounts on prescription drugs. |
Official Summary, Pros & Cons
Compare Propositions 78 and 79
Other Resources
UU Reflection...
Visitor's Comments
Join the Discussion!
Proposition 78 and 79 offer dueling attempts to provide a drug discount program for low and moderate income Californians. Proposition 78 is financed by the Pharmaceutical industry, and Proposition 79 is put forward by consumer, senior, and health advocates with financing coming primarily from public employee unions. If they both pass, the one that has the most votes becomes law and the other one is null and void. The battle between Prop 78 and 79 is turning into the most expensive political campaign in California history, with drug manufacturers outspending their opponents by about 40 to 1.
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Current Programs
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Official Summary, Pros and Cons
- Establishes discount prescription drug program, overseen by California Department of Health Services.
- Enables certain low- and moderate-income California residents to purchase prescription drugs at reduced prices.
- Authorizes Department: to contract with participating pharmacies to sell prescription drugs at agreed-upon discounts negotiated in advance; to negotiate rebate agreements with participating drug manufacturers.
- Imposes $15 annual application fee.
- Creates state fund for deposit of drug manufacturers' rebate payments.
- Requires Department's prompt determination of residents' eligibility, based on listed qualifications.
- Permits outreach programs to increase public awareness.
- Allows program to be terminated under specified conditions
Proposition
78 Summary
(Source: Official CA State Voter Information Guide)
Proposition
78 Analysis
(Source: Official CA State Voter Information Guide)
Arguments
and Rebuttals
(Source: California Secretary of State/Elections and Voter Information)
A YES vote on this measure means: A new state drug discount program would be created to reduce the costs that certain residents of the state, including persons in families with an income at or below 300 percent of the federal poverty. level, would pay for prescription drugs purchased at pharmacies.
A NO vote rejects this prescription drug discount program for low- and moderate-income Californians.
Comparing Proposition 78 and 79
Proposition 78 and 79 are competing propositions. If both pass, the
one with the most votes wins.
Proposition 78 -
What it would do:
Establishes a discount prescription drug program for uninsured Californians
with low and moderate incomes. Drug manufacturers would be invited
to offer discounts on a voluntary basis. Those CA residents eligible
to participate would be limited to those uninsured Californians who
earn up to 300 % of federal poverty level ($29,000 for individual
and $58,000 for a family of four). Persons enrolled in Medicare could
also obtain discount cards for drugs not covered by Medicare. Program
can be cancelled if there are not enough discounts offered to make
the program work or if a vendor cannot be found to run the program.
Proposition 79 -
What it would do:
Creates a prescription drug discount program for uninsured and underinsured
Californians under 400% of the federal poverty level ($38,000 for
an individual, $77,000 for a family of four). Californians with high
deductible plans, seniors who have gaps in their Medicare Part D
drug coverage, and people with chronic conditions who have health
care costs that are more than 5% of their income can also participate.
Estimated to serve 8 – 10 million Californians.
Drug companies that don’t offer discounts through this program will no longer have their drugs on the “pre-approved list” for Medi-Cal (California spends $4 billion annually on prescriptions for Medi-Cal patients - the idea is to leverage that spending to bargain for lower drug costs). Prop 79 authorizes the state to broaden the drug discount program to assist some small businesses and labor organizations that purchase health coverage for their employees and their dependents. Proposition changes state law to make it illegal for drug manufacturers to engage in profiteering.
Links Comparing Propositions 78 and 79
Chart
comparing 78 and 79, on the Legislative Analysts website (half
way down the page)
Frequently Asked Questions About Propositions 78 and 79
By consumer groups in favor of Prop 79, includes history of why they took proposition 79 to the ballot
Chart Comparing 78 and 79 on
BuyBlue.org
Comparison by the Pharmaceutical Industry (Supporting 78; Opposing 79)
Comparison by CA State Employees Association (Opposing 78; Supporting 79)
The California Debate: Competing Drug Discount Programs for Millions of Californians (in depth study)
By Medicine for People in Need (MEDPIN) - Public Health Institute
Where there is so much to be done . . . there
must be something for me to do.
– Dorothea Dix
Organizations/individuals FOR Proposition 78
Pharmaceutical Research and Manufacturers of America (PhRMA), a trade group for pharmaceutical and biomedical research firms,
have created Californians for Affordable Prescriptions to fund a campaign for Proposition 78 and Californians Against the Wrong Prescription
to oppose Proposition 79. Drug companies have pledged a record setting $80.1 million to this effort. Approximately 94% of this funding is from
companies based outside California. Taxpayer organizations, and the Los Angeles Area Chamber of Commerce are also among other supporters of Prop 78.
A List of Top Ten Donors FOR Proposition 78
Posted by the California Healthcare Foundation
Californians for Affordable Prescriptions
Organizations & Individuals AGAINST Proposition 78
Health Access (a coalition of 200 groups)
The Unitarian Universalist Legislative Ministry Action Network recommends a vote against Proposition 78 and for Proposition 79
An Extensive list of those opposed to 78 and in favor of 79
Those opposing Proposition 78 and supporting Proposition 79 get their
primary financial support from the Alliance for a Better California,
and several public employee unions. They have raised $1.8 million.
A list of top ten contributors for proposition 79.
Selected Articles, Editorials, Opinions, Reports
Drug
Firms Try to Fool Voters
Los Angeles Times, By Michael Hiltzik, August 25, 2005
California's
Dueling Drug Measurers
Associated Press, July 2005
Proposition 79's AdWatch offering rebuttals to TV ads
Propositions 78 and 79, Backers Make the Difference
Consumers Support One Initiative; with the Other it's the Drugmakers
San Francisco Chronicle, by Victoria Colliver, October 13, 2005
Reflections... UU Commentaries
Coming soon...
Visitor's Comment List
Visitor Name: Yvonne Schumacher Strejcek
Congregation: Unitarian Universalist Community of the Mountains - Grass Valley
Please note that both Propositions 78 & 79 offer alternative ways of handling prescription drug pricing in California, and they won't both pass, although voters are free to vote for or against either or both. The outcome possibilities are that one or the other will pass, or both will fail. If both receive a majority of "yes" votes, then the one with the most "yes" votes will win and the other will fail. So this is why it is important that voters NOT simply vote "no" on everything, just to express displeasure with an expensive special election. For to vote "no" on either 78 or 79 may turn out to be effectively voting "yes" on the other if both garner a majority of "yes" votes.
Yvonne Schumacher Strejcek
UULMCA board member; member of both UU Community of the Mountains, in Grass Valley, and the UU Church of Berkeley; second year MDiv student at Starr King School
Visitor Name: Carla Kincaid-Yoshikawa
Congregation: First Unitarian Universalist Society of San Francisco - San Francisco
I've watched, with alarm, the ubiquitous anti-79, pro-78 commercials funded by the big-money interests. Before I could even find any written material about 79, I was being told that government bureaucrats would dictate my presciption choices to my doctors and other boogey-man stories. As I wondered from the first ad, who is putting up all this money and what have they got to gain from it? The pro-79 groups have been nearly silent (in TV advertising). Obviously, not as well funded, I wasn't surprised to find that consumer groups supported Prop 79, while pharmaceutical industry groups support Propl 78. We all need to keep this in mind when we go to the polls and remember that the Prop 78 supporters expect to get more than their expenditures back in revenue savings if they can get Prop 78 implemented. Please vote No on 78. And please, please please, Vote Yes on 79.
Visitor Name: Chuck O'Neil
Congregation: Unitarian Universalist Society of Sacramento - Sacramento
Prop 78 is sponsored by the Drug companies and Drug company participation is voluntary. If you really think Drug companies will voluntarily agree to lower their prices, then please send your $20.00 check to purchase the Brooklyn Bridge to me. This bridge will more than pay for itsself from the voluntary tolls.
Please vote no on 78!
Chuck
Visitor Name: Eric
Congregation: Humboldt Unitarian Universalist Fellowship - Humboldt
Proposition 78 - Pharmaceutical companies' prescription discount proposal
- No
Proposition 79 - Good guys' prescription discount proposal - Yes
Page 38 of the voter's guide provides a chart of the differences between
the propositions. Of course, if both pass, the one with the greater number
of votes prevails.
The measures would essentially expand the existing MediCal prescription
discounts. I'll discuss the other differences shortly, but the key
difference is that prop 78 "offers" to allow drug companies the
opportunity to offer discounts out of the goodness of their hearts. Prop
79 mandates discounts, the punishment for failure to comply being the loss
of MediCal contracts. It also offers rebates to participating companies,
where 95% of the rebates must be directed to actual discounts rather than
administration. Prop 79 mandates oversight, and makes drug profiteering
not only unlawful but also subject to civil suit (hence the propaganda
about how the measure benefits trial lawyers like me).
Another key difference between the measures is the eligibility
requirements. Under prop 78, applicants earning under 300 percent of the
poverty level would be eligible, including families of four earning 58
thousand or less. Under prop 79, the threshold would be 400 percent of
poverty, or 77 thousand for a family of four AND any persons with medical
expenses above 5 percent of income. Prop 79 also establishes a discount
program for employers and labor organizations.
The application and renewal fee for prop 78 is $15, while it is $10 for
prop 79.
Do the math.
The one disadvantage I see to proposition 79 is that it will require
federal approval for the Medicaid related provisions, and unlike prop 78,
the pharmaceutical companies are likely to attempt to tie 79 in the courts
for years. But if they were so confident they could defeat the proposal,
they wouldn't have offered up a sham in the form of 78. And they can
always offer up discounts out of the goodness of their hearts anyway.
Visitor Name: Geoffrey Slaff
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medicines that treat cancer, dialysis patients, and sufferers of arthritis. I have heard from
many patients that have told me that they wouldn't be alive if it weren't for our products. I
am also a cancer survivor who benefitted from the availability of drugs. I will offer a
slightly different perspective but in the spirit of full disclosure I thought it wise to
acknowledge the above. Personally I believe that the most viable solution to our health
care crisis is universal, government financed health care coverage. Obviously neither
proposition goes this far. While Prop 79 looks good it does include some troubling
notions. The main one that bothers me is the ability for lawyers to sue companies for
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frivalous law suits that take time and resources away from the discovery of new important
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do they do with this money? they invest billions in looking for new drugs.
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