SALEM -- A pair of Democratic state lawmakers announced Thursday that they have introduced legislation aimed at making prescription drugs more affordable.
If the bill becomes law, drug makers that increase the cost of a medication faster than inflation or charge patients $10,000 a year for a single drug would have to pay insurers a rebate to offset the cost. The rebate would be the difference between the price the drug-maker charges in Oregon and the average price of the same drug in developed nations.
Rep. Rob Nosse, D-Portland, who is the bill's chief sponsor, and Sen. Elizabeth Steiner Hayward, D-Portland, told reporters that the cost of medication is too high for many Oregonians, and that pharmaceutical manufacturers are not transparent enough about how they price medications.
"It's a very interesting concept," said Nosse, who said most developed nations have tighter regulations on prescription drug prices than the United States.
Nosse said domestic prices of specialty medications have skyrocketed in recent years, sometimes costing patients tens of thousands of dollars for single treatments. Even widely used medications have gotten too expensive, he said.
"We have the most expensive Insulin on the planet," said Nosse, who is vice-chairman of the House health care committee.
Steiner Hayward, a practicing physician, said there is "unconscionable profiteering by the pharmaceutical industry" which Oregonians won't accept. She said higher drug prices make an outsized dent on the wallets of rank-and-file Oregonians and stress health care systems supported by taxpayers.
The Department of Corrections has seen health care costs rise by more than 25 percent in part because of prescription costs, said Steiner Hayward, who is chairwoman of the health care budget subcommittee. Public employee health plan costs have also increased markedly because of drug prices, said Shaun Parkman, who sits on the board that administers state employee benefits.
"This is a serious issue," Parkman said. "Something needs to be done in Oregon and something needs to be done now."
Jesse O'Brien, a lobbyist for the liberal-leaning Oregon State Public Interest Research Group, said other states, like Vermont, have begun to address prescription drug costs -- but haven't done enough. Vermont requires drug companies to tell the state why they're increasing prices, but those disclosures are of little value because they're not publicly available, O'Brien said.
Oregon should require drug companies to lower costs to consumers, be more transparent about their business and be accountable for a "fair rate of return" on their products, he said.
When asked what a fair profit margin on prescription drugs would be, O'Brien deferred to Steiner Hayward, who said, "You know it when you see it."
High drug prices have also been a concern of federal officials. U.S. Rep. Greg Walden, R-Ore., met with President Donald Trump and pharmaceutical company executives last month to discuss drug prices. While Trump offered little certainty about how his administration may attempt to tackle price hikes, he signaled that the conversation should continue.
As for Steiner Hayward, she said it's good that Trump is taking a look at prescription costs. "It's nice to be able to agree with the president about something," she said. But states are policy innovation laboratories, she said, and should explore their own controls on drug costs.
Nosse and Steiner Hayward said the legislation announced Thursday is just one bill of several introduced this year that aim to tackle rising drug prices. Another would cap out-of-pocket expenses for the insured.
When asked if other lawmakers support the bills, Steiner Hayward said many in the Legislature believe prescription medications are too expensive.
Opposition to the bills is clear. Pharmaceutical companies, some of which employ lobbyists to work on their behalf at the Oregon State Capitol, are largely opposed to the bills, Nosse said.
He was succinct when asked to describe how drug company lobbyists have reacted to his bill.
"They hate it," he said. "So far, they're just saying no."
-- Gordon R. Friedman
gfriedman@oregonian.com; 503-221-8209
@gordonrfriedman
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