2000 SESSION

00-2830

01/09

SENATE CONCURRENT RESOLUTION 5

ANALYSIS

This senate concurrent resolution urges the New England states and New York to consider cooperative strategies to address the challenge of the high cost of prescription medicines.

00-2830

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

Whereas, thanks to significant investments in research and development by pharmaceutical manufacturers prescription medications offer ever more safe, effective, and economical means of managing and treating a widening range of illnesses and conditions; and

Whereas, prescription medications are the most rapidly expanding component of health care in New England and the United States; and

Whereas, the prices of most prescription medications developed and marketed in the United States are relatively high compared to the prices of these same medications in other countries and other markets; and

Whereas, the cost of prescription medications for Medicaid recipients in New Hampshire rose 17 percent in 1999 and has risen 21 percent in 2000, placing severe strains on the operating budget of the department of health and human services; and

Whereas, the federal government, unlike its counterparts in countries with national health care systems, applies neither its regulatory authority nor its purchasing power to the prices of prescription medication which consequently are markedly higher in the United States than in other countries; and

Whereas, the United States stands virtually alone among the major states of the world in recognizing and protecting the legitimate patent rights of companies that develop new prescription medications yet places no reciprocal obligations on these companies to provide reasonable and affordable access to these patented medications; and

Whereas, the federal government, by legislating to ensure relatively low prices for prescription medications purchased by federal agencies like the Veteran's Administration and for federal programs like Medicaid, while maintaining constitutional barriers against state governments taking similar measures, has exacerbated the impact of prescription medication prices on the citizens of the state; and

Whereas, the high prices of prescription medications weigh most heavily on the least fortunate and most vulnerable citizens - the uninsured and underinsured as well those stricken by serious and chronic illnesses and conditions requiring intensive and extensive treatment; and

Whereas, managing prices of prescription medications and expanding access to necessary medication will decrease the overall cost of health care by reducing the demand for hospital visits and emergency services and the need for surgical and other expensive procedures; now, therefore, be it

Resolved by the Senate, the House of Representatives concurring:

That the general court, in seeking to ensure reasonable prescription medication prices for the citizens of New Hampshire, recommends that the state of New Hampshire, through its duly elected and appointed officials, explore the possibility of acting in concert with other states in New England and New York to pursue this goal; and

That the New England states and New York should consider cooperative strategies to address the challenge of the high cost of prescription medications, including:

I. Model legislation to assure citizens access to prescription medications at reasonable and affordable prices;

II. Joint pricing and purchasing agreements for prescription medications;

III. Agreements or compacts to manage and regulate the retail prices of prescription medications;

IV. Programs to provide and facilitate access of qualified citizens to supplies of gratis and discounted prescription medications offered by pharmaceutical manufacturers;

V. Initiatives to encourage and ensure medications are prescribed in the most effective manner; and

That copies of this resolution be forwarded by the senate clerk to the President of the United States Senate, the Speaker of the House of Representatives, and to the governors of each New England state and New York.

(Approved: May 17, 2000)