Prescription Drug Purchasing Consortium.  In 2005, the Legislature directed the Health Care Authority (HCA) to establish a prescription drug purchasing consortium.  In addition to state agencies, the consortium may include, on a voluntary basis, local government, private entities, labor organizations, and individuals without insurance, or who are underinsured for prescription drug coverage.  State purchased health care services purchased through health carriers and health maintenance organizations are exempt from participating in the consortium.  In 2006, Washington and Oregon formed the Northwest Prescription Drug Consortium (Northwest Consortium) to expand their purchasing power.  The Northwest Consortium offers access to retail pharmacy discounts, pharmacy benefit management services, rebate management services, and a prescription discount card for uninsured residents.

HCA may enter into partnerships with another state, a group of states, a state agency, a nonprofit organization, or any other entity to produce, distribute, or purchase generic prescription drugs and purchase and distribute insulin.  HCA may only enter into a partnership with a nongovernmental entity after a competitive bidding process. The generic prescription drugs and insulin must be produced or distributed by a drug company or generic drug manufacturer that is registered with the United States Food and Drug Administration.  The HCA shall only enter into partnerships to produce, distribute, or purchase a generic prescription drug or purchase and distribute insulin at a price that results in savings to public and private purchasers and consumers. 

State purchased health care programs must purchase the generic prescription drugs and insulin through the partnership, unless the state purchased health care program can obtain the generic prescription drug or insulin at a cost savings through another purchasing mechanism.  Local governments, private entities, health carriers, and others may choose to voluntarily purchase the generic prescription drugs and insulin from the HCA as available quantities allow. 

The committee recommended a different version of the bill than what was heard.  PRO:  No one should have to worry about how to obtain life savings drugs.  This bill is a lifeline for those with chronic diseases.  A competitive biosimilar market would drastically reduce the cost of drugs.  The bill can go into effect immediately and build on the work the prescription drug consortium already does.
 
OTHER:  The definition of generic drug should be consistent with the federal definition.

PRO:  This bill is a lifeline for those with chronic diseases.  One in four people currently ration insulin.  One in ten currently ration medication.  People who need insulin are regularly price-gouged.  Insulin should be named in the bill.  There is a role for government in controlling drug prices.  Government can partner with manufacturers to produce, purchase, and distribute generic drugs.