Group to Recommend Ways to Offset High Cost of Prescription Drugs August 03, 2002
"Prescription drug prices are growing so fast that we can't wait any longer - it's time to take action," Knowles said. "I asked these Alaska leaders in the fields of health care, insurance,
Lt. Gov. Fran Ulmer, who urged Knowles to address this issue, pointed to a June study by the Kaiser Family Foundation, which says Alaska has the fast-growing prescription drug prices in the nation. The state-by-state study, based on data provided by Verispan Scott-Levin, a pharmaceutical market research company, found that spending on prescription drugs nationwide increased 17.3 percent last year, ranging from a 12 percent rise in Maine to a 25.2 percent increase in Alaska. "All Alaskans, especially low and moderate-income senior citizens, are facing increasing difficulty faced in paying the high cost of the prescription drugs that are an essential component of adequate health care today," Ulmer said. "Just as this is an issue of national importance, it also affects every Alaskans' pocketbook." Not only does this affect every Alaskan, Knowles noted, it also costs state government money. In FY02, Alaska's Medicaid program spent $62 million on prescription drugs, a 27 percent increase over FY01. More than 26 states offer some type of assistance program to help defray the cost of prescription drugs for vulnerable citizens. At least 44 states are considering starting or expanding their programs to achieve this goal. Despite the broad consensus among the states for a national solution to this problem, Congress for years has been gridlocked by partisan bickering over this issue and has repeatedly failed to pass necessary legislation. The task force is composed of representatives from three departments of state government, a licensed pharmacist, a representative of the insurance industry, and two Alaska residents over the age of 50. Knowles has named the following Alaskans to serve on the Advisory Task Force:
Knowles asked the Lieutenant Governor to work with the task force. He also noted that today's Administrative Order is based on legislation recently proposed by Sen. Bettye Davis and Rep. Joe Hayes. Davis and Hayes joined Knowles and Ulmer for today's announcement. The task force is charged with recommending public policy and providing cost estimates for a proposed prescription drug cost assistance program in Alaska. The task force will study strategies used by other states, and gather information about the need for a prescription drug assistance program in our state. In the process of formulating its recommendations, the task force will hold public hearings and involve citizens, patients, health care providers, and representatives of insurance and pharmaceutical companies. The
task force's report to the Governor is due by October 1.
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