House backs drug measure

Plan would aid the uninsured and small-business workers

Colleen Slevin, Associated Press

Thursday, May 4, 2006

The House on Wednesday backed a plan to sell discounted drugs to the state's estimated 750,000 uninsured residents and thousands of small-business employees.

The proposal, which could end up on Gov. Bill Owens' desk by the end of the week, would be open to any resident without health insurance as well as people covered by health savings accounts - plans with high deductibles and usually no drug coverage.

Under Senate Bill 1, the state would enter into a buying pool with other states to buy drugs at a discount for people on Medicaid. Those same discounts would be available to any uninsured Coloradan regardless of income.

To join a pool, the state would have to come up with a list of the most effective and cheapest drugs to treat its Medicaid patients. Fearing that some critical drugs would be left off the list, Owens vetoed similar legislation last year. But sponsors found a way around the problem this year.

Owens' spokesman Dan Hopkins said the governor hasn't decided what he would do with the bill.

Rep. Alice Madden, D-Boulder, said drug lists are widely used by private health insurance plans to save money, and it only makes sense for Colorado to take advantage of bulk buying.

"We believe the state should shop at Costco rather than going to Saks Fifth Avenue or Neiman Marcus," she said.

How SB 1 would lower drug costs

• Allows Colorado to enter a multistate purchasing pool to buy drugs at lower bulk prices for Medicaid recipients.

• Establishes the Colorado Cares Rx Program, which would pass this discounted rate on to Colorado's estimated 750,000 uninsured residents and 40,000 individuals and families with health savings accounts.