December 20th, 2003 - Critics Attack Secret Deals by
Middlemen to Buy Drugs

The middleman companies that manage drug
benefits for millions of American workers are under growing
pressure from government officials, big employers and
some drug makers to end their practice of cutting secret
deals with drug companies, deals that often favor sales of
expensive drugs.
Already, some of the companies, known as
pharmacy benefit managers, have made formal promises to inform their customers
fully about any rebates or other deals they make with manufacturers.
More such moves could not only upend the
industry's business model but result in substantially
lower drug costs for employers and workers, according to
industry executives and analysts. Because the companies are
expected to manage the new Medicare drug benefit, the savings
could extend to the elderly, as well.
The pressure on the benefit managers is taking
several forms. Federal prosecutors who have been investigating
the industry are offering briefings to employers on
ways to demand more transparency in their drug plans.
Big employers, including the Ford Motor Company and
Verizon Communications, have been pressing in negotiations for the
benefit managers to be more open or to eliminate their deals with
manufacturers altogether.
Some drug manufacturers, meanwhile, are saying
they have no objection to letting employers see their contracts with the
pharmacy benefit managers, contradicting assertions by those
companies that it is the manufacturers who have insisted on secrecy.
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Medicare Discount Card Facts - December 21st, 2003

For individual seniors who earn more than $12,124 a year or married couples
earning more than $16,363, the Medicare discount card will:
- Cost up to $30 a year.
- Provide a 10 percent to 15 percent savings on the overall drug bill.
- Provide a discount of about 25 percent on some prescriptions.
For individual seniors earning less than $12,124 a year or married couples
earning less than $16,363 who aren't already receiving drug benefits from
Medicaid, the Medicare discount card will:
- Be free.
- Come with a $600 credit.
- Require either a 5 percent or 10 percent co-payment, depending on income.
Illinois to Seek Exemption to Buy Drugs From
Canada - December 21, 2003

Rod R. Blagojevich, the governor of Illinois,
will ask the federal authorities to permit the state to ignore
federal law and buy prescription drugs from Canada, aides said Sunday.
The request, which was met with skepticism by a federal
official, is the latest political maneuver in a swell of pressure from
local and state leaders to cut costs by buying drugs outside the country's
borders. Mr. Blagojevich, who planned to send the request on
Monday to Tommy G. Thompson, the secretary of health and human
services, wants Illinois to be designated for the nation's first
"federally approved drug importation pilot program."
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