In the United States we spend significantly more than other countries for the same exact prescription drugs, as we do not collectively negotiate fair prices with pharmacy chains and drug manufacturers. Drug companies in the U.S. realize annual profits roughly three times the norm for Fortune 500 firms.

Legislation passed in 1999 in Massachusetts requires the state’s administration to collectively negotiated lower drug prices across all public agencies, but this legislation has never been implemented by previous Republican administrations. A 2007 proposal delivered to the administration by Mass-Care, MassPIRG, and Mass. Senior Action Council details the state’s current prescription drug purchasing policy, and proposes a means for the state to comply with the 1999 law while reducing drug costs for the Commonwealth and all Massachusetts residents.

RESEARCH ON PRESCRIPTION DRUG COSTS

• “Making Prescription Drugs Affordable for Massachusetts,” Report by Mass-Care, MassPIRG, and Mass Senior Action Council, June 2007.
• Section 271 of Chapter 127 of the Acts of 1999 instructing the Administration to implement bulk purchasing of prescription drugs in Massachusetts.
• “Paying the Price: The High Cost of Prescription Drugs for Uninsured Americans,” MassPIRG, July 2006.
• “Report on Consolidated Prescription Drug Purchasing by Massachusetts State Agencies,” Massachusetts Department of Public Health, April 2004.
• “Aggregate Purchasing of Prescription Drugs: The Massachusetts Analysis,” Heinz Family Philanthropies, September 2001.