The Fair Drug Pricing Program would instruct the Commonwealth of Massachusetts to use its collective buying power to negotiate lower drug prices for the state; it would counter drug companies’ efforts to increase the usage of unnecessary brand-name medications; and it would establish strict limits on pharmaceutical companies’ gift-giving to doctors.

In the United States we spend significantly more than other countries for the same exact prescription drugs, as we do not collectively negotiate fair prices with pharmacy chains and drug manufacturers. Drug companies in the U.S. realize annual profits roughly three times the norm for Fortune 500 firms.

Legislation passed in 1999 in Massachusetts requires the state’s administration to collectively negotiated lower drug prices across all public agencies, but this legislation has never been implemented by previous Republican administrations. A 2007 proposal delivered to the administration by Mass-Care, MassPIRG, and Mass. Senior Action Council details the state’s current prescription drug purchasing policy, and proposes a means for the state to comply with the 1999 law while reducing drug costs for the Commonwealth and all Massachusetts residents.

RESEARCH ON PRESCRIPTION DRUG COSTS