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RISING DRUG PRICES CONTINUE TO OUTPACE INFLATION
Pharmaceutical companies raised prices for the top 100 brand-name drugs by another 5.5 percent in the first half of 2005, according to Delta Marketing Dynamics. Comparatively, inflation rose by 2.5 percent in the first half of the year. Not surprisingly, the drug industry continues to rake in huge profits. Pfizer, the nation�s top pharmaceutical company, made $50.9 billion in 2004, according to IMS Health. As Medicare prepares to begin its drug benefit in 2006, drug companies are looking to increase profits even more. A study by the Boston University School of Public Health found that under the 2003 Medicare law, drug companies would realize $139 billion in new profits over eight years. The flawed legislation prohibits Medicare from negotiating discounts with drug makers. For more information on the Boston University study, visit their Web site at http://www.healthreformprogram.org.
NEW YORK STATE CREATES WEB SITE ON DRUG PRICES STATEWIDE
New York Gov. George Pataki (R) has signed legislation (S. 1936) requiring the state Health Department to create a Web site displaying retail prices for 150 prescription drugs at every pharmacy in the state. The prices posted on the Web site will be based on reports that pharmacies are currently required to submit to the Health Department. Under the new law, pharmacies will be required to provide consumers with their price lists and post notices of the availability of the data. Assemblyman Richard Gottfried, Democratic chair of the Assembly Health Committee and the chief sponsor of the bill in the House, said the online database would be the most comprehensive in the U.S. He called the new site a more comprehensive and up-to-date version of the site now maintained by the state�s attorney general.
PATIENT SAFETY LEGISLATION SIGNED INTO LAW
Legislation recently signed into law will make it easier for hospitals to report medical errors and improve the quality of healthcare and patient safety. The Patient Safety and Quality Improvement Act of 2005 establishes a national network of patient safety organizations, maintained by the U.S. Department of Health and Human Services, for hospitals to report medical mistakes. The reports would be voluntary and confidential, and the patient safety organizations would use the information to develop ways to improve patient safety and reduce medical errors. The new law also contains strong whistleblower protection to prevent loss of a job, promotion or work-related benefits for nurses and health professionals who �in good faith� report errors to a patient safety organization. In addition, it provides a right of civil court action to protect healthcare workers. State employees are also covered by the provision. The AFT, along with other unions, worked diligently to assure these new protections were in the final legislation. President Bush signed the bill into law on July 29.