Committee considers creating bidding process for state generic drug purchases

February 13, 2012

By SCOTT JORGENSEN

Photo by Divine Harvester/Flickr.com

SALEM, Ore.- Legislation has been introduced to require the Oregon Health Authority (OHA) to use a competitive bidding process for purchasing generic drugs. But House Bill 4109 has been met with strong opposition by various pharmaceutical interests throughout the state.

A public hearing on HB 4109 was held during the Friday meeting of the House Committee on Health Care.

Rep. Jim Weidner, R-Yamhill, testified on behalf of the bill. He said that although there has been discussion of forming a work group to address the issues brought up by the legislation, he still wants to put the measure before the budget-writing Ways and Means Committee as soon as possible.

Putting off such action any further would be a “disservice” to Oregon taxpayers, Weidner said, as revenue to the state government continues to decline. He added that by adopting such legislation, Oregon could become a model for other states in how it purchases generic drugs.

Rep. Val Hoyle, D-Eugene, agreed in part. She said the state has a competitive bidding process for non-generics and that it would be “irresponsible” not to try to save money on its prescription drug purchases.

“I do believe there are cost savings here,” Hoyle said. “We cannot afford to leave money on the table.”

Testimony against HB 4109 was offered by Chris Bouneff, executive director of the Oregon chapter of the National Alliance on Mental Illness.

Bouneff said that in mental health “all generics are not created equal,” and individual reactions to drugs can be very different. He added that a switch in medications can be disruptive to people with mental health issues and that these issues should be addressed in the legislation so there are no unintended consequences.

Bill Cross spoke on behalf of the Oregon State Pharmacy Association and the Oregon Society of Health-System Pharmacists. He said those groups had concerns about the bill as it is currently drafted.

Also opposing HB 4109 was Shelly Bailey, co-owner of Central Drugs, an independent pharmacy in downtown Portland.

Bailey testified that the passage of HB 4109 would be “damaging to the state.” She said it ultimately would cost the state more money, hurt pharmacists and cause access problems for patients.

Written testimony against the bill was also provided by the National Association of Chain Drug Stores, the National Community Pharmacists Association and the Healthcare Distribution Management Association.

Rep. Jim Thompson, R-Dallas, acknowledged that HB 4109 was a “very complicated bill” to try to pass in a short legislative session. He said that a work group will be formed to look at the bill and closed the public hearing without the committee taking any further action on it.

The committee also held a public hearing on House Bill 4027. If passed, the bill would expand the immunity from liability for health care providers who volunteer their services for charitable organizations.

Margaret Betsch, a registered nurse in Bend, testified in favor of the bill. She serves as the medical branch coordinator for Project Connect in Central Oregon. Project Connect brings doctors, nurses and dentists together with homeless people in need of their services.

Betsch said a similar program used to exist in Portland but was shut down because volunteers were afraid of incurring potential liability.

Many of the people served by Project Connect have had their conditions properly diagnosed and were referred to the correct specialists, Betsch said, adding that the program has helped to save lives.

Chuck Hemingway, executive director of Central Oregon Veterans Outreach, also spoke in support of HB 4027.

Hemingway said that doctors who volunteer with the mobile care clinic are “paying out of their own pocket to ride with us.”

Only eight doctors are willing to participate in the program right now, Hemingway said, because of the liability issues.

“The people we serve die out there,” Hemingway said. “Where is the justice in that?”

Rep. Jason Conger, R-Bend, said the original intended purpose of medical liability was to protect patients. However, he added that there is “no benefit to having medical liability if you can’t get health care.”

Another legislator, Rep. Gene Whisnant, R-Sunriver, also spoke in favor of the bill.

Three sets of amendments have been offered to 4027 by persons representing trial lawyers. The public hearing was closed without the committee taking any further action on HB 4027.
However, the committee did move two bills to the House floor with do-pass recommendations.

A work session was held on HB 4074. The bill would permit insurers, health care service contractors, self-insured employee health benefit plans and others to incentivize enrollees who participate in wellness programs with cash dividends.

Rep. Bill Kennemer, R-Oregon City, moved to pass the bill, which has a prior referral to the House Revenue Committee. The motion was approved unanimously.

Committee members voted unanimously to advance HB 4128, which would require health benefit plans to cover medically necessary dental or orthodontic services for the treatment of craniofacial anomalies.

Hoyle said that the bill was the result of a collaborative effort between the insurance and dental industries. Thompson praised it as the “perfect outcome,” in which a resolution was reached on a contentious issue through all parties getting together and working it out.

HB 4128 will be carried by Hoyle on the House floor.

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