By Jason Cunningham
Comptroller Kevin Lembo announced a cost-savings plan during a press conference last Thursday that could overhaul the way Connecticut purchases prescription drugs. Potential savings, he said, could reach $66.5 million in state tax dollars annually.
The plan would merge prescription drug purchasing currently conducted separately by the state Department of Social Services and the Office of the State Comptroller. According to Lembo, the change would occur in the back end of the process with the discounts that come from the benefit of a larger purchasing pool. Lembo said that this kind of coordinated purchasing has been encouraged by various legislative items passed last year that pushed for this kind of movement, and that he is currently in ongoing conversation with many municipalities to make the group larger.
Lembo believes that savings could be seen as soon as the 2012 fiscal year if legislature in both chambers moves quickly. Lembo said that the Malloy administration will receive the bill when it comes their way and Lembo hopes that it will be part of the Governor’s larger budget proposal.
Eventually, Lembo wants to hit the bottom of volume discounting by bringing more people into the pool, including small towns. The savings number could increase by an additional $13.5 million after talks with smaller, independent pharmacies who are the only providers to smaller areas are concluded. This additional research is needed to not tighten access to medications in those smaller communities.
Lembo noted that the state DSS currently fills about 9 million prescriptions a year. Between 3 and 4 million are directly out of Lembo’s office. Currently, these drugs ordered through the state DSS with pharmacy benefits his office covers are for state workers and retirees. Lembo emphasized that there will be no change for the recipients of the pharmaceutical benefit and that state employees would stay in the same plan they are in now.
Lembo believes that the change will help make the state DSS more sustainable over time. A public hearing on the matter is to be held soon.