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Delaware Takes on High Prescription Drug Costs by Leveraging Public Purchasers
/in Policy Delaware Blogs Administrative Actions, Cost, Payment, and Delivery Reform, Health System Costs, Medicaid Managed Care, Newly-Enacted Laws, Prescription Drug Pricing, State Rx Legislative Action /by Trish RileyDelaware’s state Legislature has established the Interagency Pharmaceuticals Purchasing Study Group to recommend steps to leverage bulk purchasing of drugs to effectively negotiate lower prices by using interagency and multistate purchasing contracts, and other approaches. The measure easily passed the House on a voice vote and unanimously passed the Senate.
The study group has an ambitious agenda and must report its findings and recommendations to Gov. John Carney Jr. and the state legislature by Dec. 31, 2109.
Health care spending in Delaware exceeds the national average and has historically outpaced inflation and the state’s economic growth. The bill’s authors wrote, “… a major cause of skyrocketing prescription drug prices is bargaining asymmetry, by which the pharmaceutical industry, often wielding monopoly power, is left unchecked, in the absence of a strong counter-party at the bargaining table.”
Lawmakers noted that, “establishing a single-purchaser for the highest-cost prescription drugs will move Delaware one step closer to a comprehensive solution for affordable and accessible health care for all.”
The study group will be co-chaired by a state representative appointed by the Speaker of the House and a state senator appointed by the senate’s President Pro Tempore. Two more lawmakers will be appointed to achieve bipartisan representation, and the following additional members or their designees will be appointed:
- Controller General
- Secretary, Department of Health and Social Services
- Director, Office of Management and Budget
- Commissioner, Department of Corrections
- Secretary, Department of Services for Children, Youth, and their Families
- Director, Division of Medicaid and Medical Assistance
- Director, Division of Public Health
- Secretary, Department of Human Resource
- Administrator, Delaware Veterans Home
- One member of the State Employee Benefits Committee
Delaware joins California and New Mexico and other states leading the way to leverage and combine their collective purchasing power to lower drug spending. The National Academy for State Health Policy will continue to report on their progress.
For more information about what states are doing to harness their purchasing power to curb health care costs, read: Cross-Agency Strategies to Curb Health Care Costs: Leveraging State Purchasing Power, April 2019.
Cha-Ching! Lowering Rx Costs
/in Policy Annual Conference /by NASHP WritersThursday, August 16th
3:30pm – 5:00pm
State agencies and legislatures are becoming increasingly active in their efforts to curb large and unpredictable prescription drug cost increases that make coverage unaffordable for consumers and state budgets. Areas of focus include:
- Regulating pharmacy benefit managers;
- Requiring manufacturer drug price transparency;
- Prohibiting price-gouging;
- Establishing drug cost review commissions for rate setting; and
- Implementing state wholesale drug importation from Canada.
This session digs deep into the strategies behind these legislative approaches. Hear from experts and state officials who have taken on prescription drug costs.
Moderator
Rene Mollow, MSN, RN, Deputy Director of Health Care Benefits and Eligibility, California Department of Health Care Services
René has been with the California Department of Health Care Services (DHCS) since 1995. In the Medi-Cal program, she serves as the Deputy Director for Health Care Benefits and Eligibility (HCBE). She provides leadership for benefit and eligibility policy planning, development, implementation, and evaluation of health care services and delivery systems under Medi-Cal and for the Children’s Health Insurance Program (CHIP). HCBE is comprised of five divisions and one office: Benefits, Eligibility, Pharmacy Benefits, Primary and Rural Indian Health, Dental, and the Office of Family Planning. René works to ensure that policies, procedures, and related activities in HCBE conform to applicable state and federal policies, statutes and regulations. She assists the Directorate, Administration and State Legislatures in determining program direction consistent with legislative intent and consults with the Director and State Medicaid Director on issues of significant policy impact.
Speakers
Virginia Lyons, Vermont Senator, Vermont State Senate
Vermont Senator Virginia “Ginny” Lyons serves as Vice Chair of the Health and Welfare Committee and on the Finance Committee. She Co-Chairs Vermont’s Commission on International Trade and State Sovereignty, Chairs the Joint Energy Committee, and serves on other Senate and community organizations. Ginny champions data informed policies that address public health, health care improvement, substance misuse, child and family resilience, consumer product safety, environmental and water quality, energy efficiency, and others. Ginny served as Town Select Board Chair for 15 years. As a College Biology Professor with a Doctorate form the University of Vermont, Senator Lyons developed and directed Pre-Medical and Allied Health programs.
Joshua Wojcik, Assistant Comptroller, Connecticut Office of the State Comptroller

Joshua Wojcik an Assistant Comptroller at the Connecticut State Comptroller’s Office. The Office of the State Comptroller is responsible for the employee and retiree medical, dental, and pharmacy benefit programs for 230,000 employees, retirees, and family members throughout the state. Joshua is responsible for the development and coordination of new policy initiatives for the office, oversees the implementation of new programs related to health care and state employee benefit changes and participates in all procurement activities for health care related vendors. Joshua represents the Office of the State Comptroller as a member of several health care related boards and committees and plays a lead role in negotiating the passage of major legislation promoted by the office related to health care, pharmacy costs or other significant issues.
Vincent DeMarco, President, Maryland Citizens' Health Initaitive

Vincent DeMarco is a long time advocate for public health causes including reducing teen smoking, underage drinking and gun violence, expanding health care access and making prescription drugs more affordable. He is the subject of a book by former FTC Chair and Advocacy Institute co-founder Michael Pertschuk entitled “The DeMarco Factor: Transforming Public Will Into Political Power.” He played a key role in the enactment of Maryland’s life-saving tobacco tax increase of 2007, alcohol tax increase of 2011, and Firearm Safety Act of 201, and anti-price gouging law for prescription drug prices of 2017 and is working to guarantee health care for all Marylanders. His work has resulted in legislation which has substantially reduced smoking in Maryland, giving Maryland the fourth lowest smoking rate in the nation, reduced drunk driving deaths as a result of the alcohol tax increase, and has expanded health care insurance to over 300,000 people. As National Coordinator of Faith United Against Tobacco, a national coalition of leaders from across the country working to reduce smoking, he played a key role in the enactment in June of 2009 of landmark national legislation to authorize the FDA to regulate tobacco products. He is the Board Chair of the Maryland Clean Energy Jobs Initiative working to increase renewable energy use in Maryland. And, as an Adjunct Assistant Professor at the Johns Hopkins Bloomberg School of Public Health, he is working to educate public health students from around the world on effective methods of advocating for public health policies. He has been recognized for his work by the organizations such as the Baltimore Sun which declared him “Marylander of the Year” in 1988, the Central Maryland Ecumenical Council which awarded him its 2002 “Ecumenical Leadership Award” and the Daily Record which named him one of Maryland’s 60 most influential people in 2010.
This session was made possible with support from the Laura and John Arnold Foundation
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