U.S. Rep seeks states rights in determining drug costs

[Omaha Steve]

http://www.laborradio.org/node/6471

U.S. Rep seeks states rights in determining drug costs

One U.S. representative is seeking to allow states to force drug discounts for low wage workers. Maryland Representative Chris Van Hollen plans to introduce the bill this week. It would allow states to negotiate better rates using their purchasing power. Savings would then be passed onto those who earn less than three times the federal poverty level. The bill was inspired by a similar one drafted by former Minnesota Senator Paul Wellstone before he died in a plane crash. When a similar bill was signed into law on the state level in Maryland, the Department of Health and Human Services, under orders from the Bush administration, denied an application for a Medicaid waiver. The President has already vowed to veto bills that would expand health insurance for low income children and cut Medicare payments to private health plans.