Oregon Prescription Drug Program Details

OSPIRG supported legislation that created the Oregon Prescription Drug Purchasing Program in 2003. In November, 2006 voters overwhelmingly passed OSPIRG-backed measure 44 to expand the program to all Oregonians lacking drug coverage. Next, in March of 2007, Governor Kulongoski signed into law Senate Bill 362, further expanding the program to the private sector.

This smart purchasing pool now leverages the buying power of state agencies, local governments, school districts, Oregonians lacking drug coverage, and the private sector – all to negotiate lower prescription prices. Through the Program, individual members are saving an average of 43%, and up to 60% savings on generic drugs.

Visit www.oregon.gov to sign up.

Rising Rx Drug Prices Hurt All Oregonians
Rising drug costs in Oregon are taking their toll on all of us. Increasingly, Oregon's uninsured, underinsured and seniors must choose between paying rent and buying necessary medications.

Even those with coverage are greatly affected.

The big drug companies have raised prices at twice the rate of inflation over the past five years—and justified those price hikes with false claims. Oregon’s statewide prescription drug purchasing pool, the Oregon Prescription Drug Program, has a proven track record of cutting prices by as much as 60%.

Out Of Control Drug Costs
Cost Of Needed Medications Out Of Reach: Over one million Oregonians lack prescription drug coverage, and pay the highest prices for drugs, according to OSPIRG’s 2006 report, “Paying the Price: the High Cost of Prescription Drugs for Uninsured Oregonians.”

Industry Is Inflating Prices
Exaggerating R&D Costs: The pharmaceutical industry—which is nearly four times as profitable as the average Fortune 500 company—falsely claims the inflated costs are needed for research and development. In fact, many pharmaceutical companies spend twice as much on advertising as they do on research and development.

Consumers Pay Twice For Rx Drugs: Taxpayers spent $27 million subsidizing the development of Taxol, a cancer treatment drug. Even with taxpayer support to develop the drug, Bristol Myers Squibb still charges patients up to 20 times more than it costs to produce the drug.

Getting Better Prices
Bulk Buying Power: OSPIRG is working to reduce the cost of prescription drugs by expanding Oregon’s prescription drug purchasing pool. The pool leverages the buying power of state agencies, local governments, employers and participating Oregonians to negotiate lower prices.

"The high cost of prescription drugs hurt’s Oregonians and our economy. Oregon’s drug purchasing pool, the Oregon Prescription Drug Program, forces the drug industry to come to the table and negotiate prices in earnest. It empowers Oregonians to lower drug costs."

— Laura Etherton OSPIRG Consumer Advocate

Bulk Buying Power Lowers Prices
Fortunately, there is a solution now in place to help all Oregonians get fair drug prices.

Oregon’s prescription drug buying pool, recently expanded to the private sector and all Oregonians lacking drug coverage, allows Oregon to negotiate fair, reasonable prices directly with drug companies—similar to what the United States Veterans Administration, and big insurance companies do.

Over one million Oregon consumers are able to opt-in to the state-buying program, saving hundreds every year for each consumer and saving the state millions in taxpayer dollars.