New England Tackles High Drug Prices.

Two New England states are trying to lower pharmaceutical costs to their citizens through recently passed laws.

Massachusetts' FY 2000 budget establishes a new program for discounted bulk or "aggregate purchase" of prescription drugs. It will combine the purchasing power of several groups, including participants in the state's Senior Pharmacy program, state employees, Medicaid enrollees, others for whom the state subsidizes prescriptions and uninsured or underinsured individuals.

The bulk purchase program could cut prices 20 percent or more and help 1.6 million residents, according to Senator Mark Montigny, Ways and Means Committee chairman. Part of the plan calls for the governor's administration and finance secretary to design the program and contract with one or more outside organizations to manage it.

The Maine Resident Low-Cost Prescription Drug Program went into effect in February. Under the law, drug manufacturers who choose to participate pay rebates to the state. Once agreed to, the rebates are in the same amount as federally established Medicaid rebates (currently around 18 percent to 20 percent). When filling a prescription, the consumer picks whatever pharmacy he or she wishes. The pharmacy deducts the discount amount set for products from a participating manufacturer, but otherwise is free to set its own price.

All Maine residents who have no prescription drug insurance coverage qualify for the discounts. There are no enrollment procedures, age limits or identification card. Maine pharmacists clarified that all prescription purchases already require an ID such as a driver's license...