AB 686 -- Koretz, D, West Hollywood -- Would Slash Taxpayers' Tab for Drug Marketing Costs, Says AIDS Healthcare Foundation.

Business Editors/Health & Medical Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 8, 2002

AIDS Healthcare Foundation:

-- Broad Coalition Builds Supporting Unique Bill to Cut Pharmacy Costs for
Life-Threatening Illnesses

-- Backers Include: AIDS Healthcare Foundation (AHF), California Congress of
Seniors, California Public Interest Research Group (CALPIRG), California Nurses
Association and the California Alliance for Pride and Equality (CAPE)

A broad-based coalition of California health and senior organizations concerned about the escalating costs of life-saving drugs has quickly signed on to support Assemblyman Paul Koretz's (D, W. Hollywood) groundbreaking bill to reign in such costs to California taxpayers. The bill -- Assembly Bill 686 -- would prohibit the State of California from paying for pharmaceutical manufacturers' costs for the marketing of drugs that are prescribed for life-threatening chronic conditions, except those costs that are associated with the necessary and appropriate education of patients and physicians.

In a press conference earlier today at the State Capitol, Assembly Member Koretz was joined by AIDS Healthcare Foundation (AHF) President Michael Weinstein, the sponsor of the bill; and representatives from the Congress of California Seniors, the California Public Interest Research Group (CALPIRG), the California Nurses Association (CNA) and the California Alliance for Pride and Equality (CAPE), all of whom have signed on in support of the bill.

"Drug company marketing costs now far exceed those of research and development," said Michael Weinstein, AHF's President. "As California faces a budget crisis with a 24 billion dollar deficit, why should taxpayers foot the bill for drug company marketing junkets and five star hotels? AB 686 would slash the taxpayers' tab for such marketing costs and I thank Paul Koretz for introducing and carrying this bill."

"This self-promotion offers no advantage to the state and only drives up our own prescription bills," said Assembly Member Koretz. "AB 686 prevents the state from inadvertently fueling higher drug prices ... (and) will cut the exorbitant marketing costs from the price California pays for drugs for life-threatening chronic conditions."

AIDS Healthcare Foundation believes as seriously ill patients and seniors everywhere are faced with skyrocketing drug prices, pharmaceutical companies continue to enjoy soaring profits. Many studies have found that direct-to-consumer advertising of drugs as well as free vacations, honorariums, event tickets and other goodies lavished upon doctors are primarily responsible for the increasing demand for certain drugs.

"On behalf of the 44,000 members of the California Nurses Association, I want to say we love this bill," said Sara Nichols, JD, Legislative Advocate for the California Nurses Association. "One of the single biggest factors in the price of hospital care now is drug costs. It's okay for drug companies to make a profit -- but not profiteer -- off of drugs for life-threatening conditions."

Persons with life-threatening diseases such as cancer and AIDS are then forced to rely on drugs that can cost thousands of dollars a year. The State must pay these high costs for beneficiaries on its public health programs such as Medi-Cal and the AIDS Drug Assistance Program (ADAP). Currently, the product marketing costs are built into the total price of drugs. Koretz's bill will limit the state's contribution to the marketing of these life-saving drugs. In a year when the state is facing a $24 billion deficit, Koretz and AHF believe it is highly inappropriate for the state's taxpayers to be financing the blatant, global promotion of these drugs, especially as their prices increase. This bill would dramatically reduce the cost for the state in the purchase of drugs, thereby maximizing coverage for persons in need of assistance and reducing budget pressures on the state's public health programs.