BALCONY Supports Prescription Reform Package

Statement by Lou Gordon, BALCONY Coordinator

BALCONY, the Business and Labor Coalition of New York, came into existence in 2006 and represents more than five hundred businesses, labor unions and non-profit organizations. BALCONY seeks common ground and policy solutions on key issues that affect all New Yorkers.

Early on in BALCONY’s existence, we realized that rising prescription drug costs were a major impediment to solving the statewide healthcare coverage crisis and have a major inflationary impact on the cost of health care for all of our residents.

The Heinz Family Philanthropies, one of BALCONY’s early supporters, had conducted studies in Massachusetts, Virginia, Rhode Island, and Oregon, and these studies proved the feasibility of a daring new approach to make the pricing of drugs less of a burden on those who need them. As described by NYSUT Executive Vice-President and BALCONY Co-Chairman Alan Lubin, “New York State should use its clout as one of the world’s largest buyers of pharmaceuticals to consolidate its purchasing and negotiate reduced drug prices for Medicaid, EPIC, and local government employees as well as for individuals, unions, and private employers who choose to participate.”

Bruce Ventimiglia, the Chairman of Saratoga Capital Management and BALCONY’s Co-Chairman, adds “This is a win-win solution. Small businesses will support programs that help their employees and create a more vibrant New York business environment. However, they need assurances that the costs of programs they support will not go through the roof.”

BALCONY commissioned the Fiscal Policy Institute to assess the savings impact of the pooled bulk drug purchase program. FPI estimated that New York State could save upwards of $100 million per year from this one strategy alone.

The opportunity to stop the runaway escalation of health care costs cannot be squandered. Survey after survey indicates that financially-strapped patients would take smaller doses of their prescribed medicines, or even delay filling prescriptions, due to the rising costs of drugs. Others began purchasing their drugs over the Internet or taking road trips to Canada. All of these alternative solutions carry with them medical risks that would actually diminish New York State’s standards of care, not improve them.

BALCONY joins one of its newest members, AARP of New York, in supporting the Assembly Rx Reform Package with the understanding that it will have a positive impact on New Yorkers’ ability to access affordable prescription drugs. At the same time, we echo the AARP New York belief that “these reforms will go far to save precious taxpayer dollars.”

If New York State is to achieve affordable health care coverage for all, it cannot take one step backward for every couple of steps forward. Pooled Bulk purchase of prescription drugs is one aspect of a complicated but necessary set of reforms, and failing to enact legislation to ensure such discounts makes the rest of the health care reform process all that more difficult.

We have are submitting to the committee the BALCONY Plan for “Containing Prescription Drug Cost – New York’s Opportunity for Savings”. Thank you for considering this critical issue.

Read the entire article: Lou Gordon Testimony on RX Reform

AARP New York Testimony
New York State Assembly Health Committee

Prescription Drug Marketing and Purchasing Reform
The Impact on Accessibility and Affordability

Read the entire testimony: Prescription Testimony

Testimony by Richard F. Daines, M.D., New York State Commissioner of Health

Read the entire testimony: Daines Testimony