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Pharmacists issue wrong prescription for mail-order drugs

Date Posted: May 28 2004

LANSING – There aren’t many glimmers of good news when it comes to bringing down the high cost of prescription drugs, although purchasing drugs through the mail is one area that is providing savings.

But pharmacists large and small around the state – who see a major threat to their income – are lobbying state lawmakers in an effort to pass legislation that would largely kill the mail-order pharmacy business.

Nothing doing, say the Detroit and Michigan Building Trades Councils and other organizations that are part of a lobbying group called the Economic Alliance of Michigan and a sub-group, the Michigan Health Purchasers Coalition. The Alliance, which includes an unusual mix of chambers of commerce, large corporations and unions, is pushing back at the pharmacists’ efforts, demanding that state lawmakers maintain an open, competitive playing field for drug purchasers.

Tom Boensch, Secretary-Treasurer of the Michigan State Building Trades Council, expressed opposition to the pharmacy bills. “The building trades are joint partners with construction companies in managing our health benefits on a day-to-day basis,” he said. “These bills are the opposite of cost reduction. It’s just a way for retail druggists to make more money. But that will be at the expense of workers and employers, whose bills for prescription drugs will go up. The alleged fixes in the recent versions of the legislation do not change that basic reality.”

According to Milliman U.S.A., a national health benefit consultant and actuarial firm, Michigan employers would have to pay an extra $124 million in health insurance if the legislation is adopted.

“Purchaser coalition members agree with one provision in the bills that would allow local retail pharmacies to fill prescriptions by mail,” said Rich Studley, senior vice president of government relations for the Michigan Chamber of Commerce. “However, protectionist legislation pending in the state House goes far beyond simply leveling the playing field for local pharmacies. The Michigan Chamber is opposed to these bills because they would over-regulate pharmacy benefit managers, discourage competition, and hinder the ability of employers and employees to save money on prescription drugs.”

The legislation is in a state House committee, and it has yet to be voted on by the panel. Brian Broderick, the legislative director for the Economic Alliance, said it “boggles my mind” how the pharmacy industry has successfully kept this issue afloat in the face of opposition from the Big Three automakers, the Michigan Chamber of Commerce and organized labor.

He said part of the reason is that lobbyists don’t have as much pull with term-limited lawmakers. The other part of the equation, Broderick said, is that pharmacists have a sterling reputation among the general public, and lawmakers are hesitant to vote on issues that could adversely affect the drug dispensers.