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Being a state Senator is similar to being a General Practioner. You have to know a little bit about a variety of topics. For this reason selecting a priority designation can be an interesting task. My measuring stick for selecting and introducing legislation this year is a simple question: Will this legislation start a conversation worth having? If the answer is yes, than it deserves specialized attention.
I am pleased to have reached an agreement with the Governor on my main priority issue to create an Office of Energy Independence, which you will be hearing more about in the near future. The economy has also made me realize that the state needs to find ways to save money, especially in the area of Medicaid. In addition, another high priority designated by the district survey response was health care. That is my reason for selecting LB 830 as my 2008 priority bill. This legislation was introduced by Senator Steve Lathrop of Omaha. The bill seeks to lower the cost that state of Nebraska pays for prescription drugs for the Medicaid program.
First, the legislation will create a preferred drug list for the Medicaid program. A preferred drug list designates certain of prescription drugs with 'preferred' status. Preferred status is granted first to those drugs which are therapeutically superior without regard to cost. Among groups of drugs which are found to be therapeutically equivalent, the lowest cost drug is to be designated as preferred.
Second, the legislation will empower the chief executive officer of the Department of Health and Human Services to negotiate for further supplemental rebates from pharmaceutical manufacturers by entering into a purchasing pool with other states.
Approximately 47 other states have already adopted these simple provisions, which will save the state taxpayers millions of dollars. In a study of the Medicaid Pharmacy Program that evaluated implementing a PDL, Nebraska state savings ranged from $2-4 million once fully implemented with additional savings from the purchasing pool that range from $6.7 million to 9 million. This is a considerable amount of money for Nebraska taxpayers to save.
The PDL has proven a very effective tool in addressing the escalating cost of drugs. This legislation seeks to build on the success of programs in other states. Medicaid costs are a considerable portion of the state budget, with prescription drug costs rising at exponential rates. This legislation has proven to significantly reduce Medicaid costs in other states.
I am encouraged that we will finally have a debate on prescription drugs in the state of Nebraska. I hope that this will be a stepping stone for future reform in Nebraska.
As always, do not hesitate to contact me with your comments or concerns.
Senator Annette Dubas
State Capitol, PO Box 94604
Lincoln, NE 68509-4604
adubas@leg.ne.gov
402-471-2630
www.annettedubas.com
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