Copyright 2000 P.G. Publishing Co.
Pittsburgh
Post-Gazette
March 29, 2000, Wednesday, SOONER EDITION
SECTION: STATE, Pg. B-7
LENGTH: 869 words
HEADLINE:
LEGISLATIVE HEARINGS ON RISING DRUG COSTS COULD LEAD ANYWHERE
BYLINE: ANNA DUBROVSKY, WWW.CAPITOLWIRE.COM
DATELINE: HARRISBURG --
BODY:
State Rep. Pat Vance's investigation into rising pharmaceutical
costs could lead to price controls.
Or, it could lead nowhere.
The Cumberland County Republican said she doesn't have any preconceived
ideas. The only thing she's certain of as her 11-member task force prepares to
probe the hot-button issue is that everyone will come away a little bit smarter.
"Anything's possible," Vance said. "It seems to me the purpose of the
select committee is to find the facts and determine what's really happening, and
not decide ahead of time what the results are supposed to be."
Legislators in both chambers are trying to determine what's happening to
the cost of prescription drugs. Why are some senior citizens
unable to afford the medicines they need? Why are health plans dropping
prescription coverage? Why are the same medicines cheaper in countries such as
Canada and England? And what -- if anything -- can the state do about it?
"There's a lot of unanswered questions," Vance said.
Both the
Senate and House have launched a series of hearings. Two Senate committees held
a joint hearing in Pittsburgh last week. Vance's House Select Committee on
Pharmaceuticals will meet tomorrow, before taking its investigation on the road.
Members expect to hear from senior citizens and other consumers affected by the
rising costs, representatives of the pharmaceutical industry and policy experts.
Though some have blamed the pharmaceutical companies, Vance said she
will not be conducting a witch hunt.
"I've told them this is their
opportunity to tell their side of the story," she said. "And if it's a valid
story, there's no concern. And I hope that they look at it as an opportunity,
not a threat."
Within the pharmaceutical industry, there is cautious
optimism.
"I see these hearings as a tremendous opportunity, and we are
grateful to Pat Vance, frankly, because there have been questions raised," said
Kathi Cullari, executive director of the Pennsylvania Healthcare Technology
Network, a coalition of pharmaceutical and biotechnology companies. "What we're
hoping to get is an opportunity to talk about the long research and development
process."
In making their case, drug makers will point
out that it takes 15 years and $ 500 million to bring one new product to market,
Cullari said. Only one in 5,000 test compounds makes it to pharmacy shelves,
which means that a great deal of the money invested in research and development
never yields a profit.
"Historically, the industry has been so caught up
in research and development that they have not talked about or educated the
public about what it takes to bring these products to market," Cullari said.
Vance said she has no doubt that pharmaceutical companies devote vast
resources to research and development, but that justification for rising
drug costs leaves her unsatisfied. For one, it doesn't explain
why new drugs are so much more expensive than older ones. Nor
does it account for the bargain prices that patients in Canada enjoy.
Cullari said drug companies are prepared to explain
things such as price differentials between countries. There are trade-offs for
lower prices, she said. Canadians must endure rationing of health care
resources. They can wait up to a year for a drug that is
readily available to Americans, she said.
A five-time cancer survivor
will speak at the hearing Thursday on behalf of the Healthcare Technology
Network, making the case for more of the aggressive, unbridled research that has
kept her alive for 30 years, Cullari said.
Another key issue that
promises to dominate the hearings is drug advertising and its
impact on costs. Doctors have complained that glossy television ads prompt
patients to demand particular drugs -- drugs that may not be
the best or the cheapest option for them, if even necessary.
"I still
hear from some senior citizens who believe if it's a generic
drug, it's not a good drug," Vance said.
Drug companies see advertising as a critical education
tool.
"People are really taking a more proactive stance on their health
these days," Cullari said. Advertisements "provide a good base of knowledge."
While the industry adamantly opposes price controls, arguing that they
would bind the hands of drug companies, limit research and, in
the long run, hurt consumers, it says it is willing to work with lawmakers to
make pharmaceuticals more affordable.
"The industry is very sympathetic
and has an appreciation for the fact that there are seniors who are struggling
to afford their prescriptions," Cullari said.
Pharmaceutical Research
and Manufacturers of America, a national trade organization representing about
100 drug makers, supports efforts in Washington to expand
Medicare coverage for prescription drugs.
Internally,
drug companies are brainstorming ways to cut costs. They hope
to rein in cost drivers such as litigation, prescription fraud and
drug abuse. They are seeking patent extensions
to allow companies more time to recover the costs of research and development.
And they're investing in "bioinformatics," new technologies that will allow the
industry to find that one in 5,000 compounds much faster and more affordably.
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