THE MASSACHUSETTS PRESCRIPTION REFORM COALITION
CALLS ON GOVERNOR PATRICK TO SIGN HEALTH CARE
COST CONTROL LEGISLATION

BOSTON, MA – August 6, 2008 – The Massachusetts Prescription Reform Coalition
today called on Governor Patrick to prioritize evidence-based, lower-cost health care for
Massachusetts consumers by signing legislation that restricts industry gifts to health care
providers and creates an evidence-based prescriber education program.

The prescription reform provisions were included in An Act To Promote Cost
Containment, Transparency, and Efficiency in the Delivery of Quality Health Care (S.
2863), omnibus cost and quality legislation introduced by Senate President Therese
Murray in March and passed by the House and Senate last week. The measures aim to
limit the influence of pharmaceutical marketing, which promotes the newest, most
expensive and least proven drugs, resulting in higher healthcare costs and compromised
quality of care.

“The bill’s restrictions on pharmaceutical gifts to health care providers and the
requirement that companies disclose their financial relationships with providers is a fair
compromise between the original House and Senate language, and a positive step toward
ensuring the strongest and safest possible protections for consumers,” said Deborah
Banda, state director, AARP Massachusetts, which represents 875,000 members age 50
and over in the Bay State.

Between 2000 and 2006, prices of the most commonly prescribed brand name drugs
grew by over 50 percent, more than double the rate of inflation. This increase has been
driven by inappropriate, and, until now, unchecked marketing practices. The
pharmaceutical industry spent over $8 billion nationwide marketing its drugs to health
care providers in 2006 alone, including providing gifts, meals and other financial
incentives.

The legislation requires the Department of Public Health to enforce restrictions on
industry gifts to health care providers, which are to be based on the voluntary codes
already in place through the pharmaceutical and medical device trade organizations.
Though these codes were created by the industry and already set the standard for
marketing to physicians, evidence shows that, as voluntary standards, they have not been
uniformly adopted or adequately enforced.

Pharmaceutical and medical device companies will be able to continue to provide certain
items and payments under the legislation, but will be required to report any such items or
payments made to providers in excess of $50. Similar disclosure requirements exist in a
number of other states, and the information collected would be made public to allow consumers to know the
financial relationship their providers have with the pharmaceutical industry.

The evidence-based prescriber education program (often referred to as “academic detailing”) will ensure that
providers can rely on well-rounded and unbiased information to make their prescribing decisions, rather than
promotional materials. Similar programs in other states have been shown to more than pay for themselves with
savings to public programs.

The Governor has until Monday to sign the legislation. By taking a stand against inappropriate marketing
practices and promoting evidence-based prescribing, he can ensure that everyone in the Commonwealth has
access to the right drug at the right price.

About Massachusetts Prescription Reform Coalition
The Massachusetts Prescription Reform Coalition is a diverse group of community organizations, local and
national non-profit organizations, healthcare advocates, private insurers, and healthcare providers dedicated to
making affordable prescription drugs available to everyone. The Coalition is committed to promoting evidencebased,
unbiased prescribing. For more information visit www.hcfama.org/MPRC.

-###-

THE MASSACHUSETTS PRESCRIPTION REFORM COALITION
CALLS ON GOVERNOR PATRICK TO SIGN HEALTH CARE
COST CONTROL LEGISLATION

BOSTON, MA – August 6, 2008 – The Massachusetts Prescription Reform Coalition
today called on Governor Patrick to prioritize evidence-based, lower-cost health care for
Massachusetts consumers by signing legislation that restricts industry gifts to health care
providers and creates an evidence-based prescriber education program.

The prescription reform provisions were included in An Act To Promote Cost
Containment, Transparency, and Efficiency in the Delivery of Quality Health Care (S.
2863), omnibus cost and quality legislation introduced by Senate President Therese
Murray in March and passed by the House and Senate last week. The measures aim to
limit the influence of pharmaceutical marketing, which promotes the newest, most
expensive and least proven drugs, resulting in higher healthcare costs and compromised
quality of care.

“The bill’s restrictions on pharmaceutical gifts to health care providers and the
requirement that companies disclose their financial relationships with providers is a fair
compromise between the original House and Senate language, and a positive step toward
ensuring the strongest and safest possible protections for consumers,” said Deborah
Banda, state director, AARP Massachusetts, which represents 875,000 members age 50
and over in the Bay State.

Between 2000 and 2006, prices of the most commonly prescribed brand name drugs
grew by over 50 percent, more than double the rate of inflation. This increase has been
driven by inappropriate, and, until now, unchecked marketing practices. The
pharmaceutical industry spent over $8 billion nationwide marketing its drugs to health
care providers in 2006 alone, including providing gifts, meals and other financial
incentives.

The legislation requires the Department of Public Health to enforce restrictions on
industry gifts to health care providers, which are to be based on the voluntary codes
already in place through the pharmaceutical and medical device trade organizations.
Though these codes were created by the industry and already set the standard for
marketing to physicians, evidence shows that, as voluntary standards, they have not been
uniformly adopted or adequately enforced.

Pharmaceutical and medical device companies will be able to continue to provide certain
items and payments under the legislation, but will be required to report any such items or
payments made to providers in excess of $50. Similar disclosure requirements exist in a
number of other states, and the information collected would be made public to allow consumers to know the
financial relationship their providers have with the pharmaceutical industry.

The evidence-based prescriber education program (often referred to as “academic detailing”) will ensure that
providers can rely on well-rounded and unbiased information to make their prescribing decisions, rather than
promotional materials. Similar programs in other states have been shown to more than pay for themselves with
savings to public programs.

The Governor has until Monday to sign the legislation. By taking a stand against inappropriate marketing
practices and promoting evidence-based prescribing, he can ensure that everyone in the Commonwealth has
access to the right drug at the right price.

About Massachusetts Prescription Reform Coalition
The Massachusetts Prescription Reform Coalition is a diverse group of community organizations, local and
national non-profit organizations, healthcare advocates, private insurers, and healthcare providers dedicated to
making affordable prescription drugs available to everyone. The Coalition is committed to promoting evidencebased,
unbiased prescribing. For more information visit www.hcfama.org/MPRC.

-###-

WASHINGTON -- AARP issued a statement yesterday commemorating the 43rd anniversary of Medicare and Medicaid. The statement, from AARP Executive Vice President Nancy LeaMond, follows:

“The passage of Medicare and Medicaid in 1965 was an important event in America’s history. Congress and the Administration worked together to solve a national crisis by providing health care to the most vulnerable among us. 

“A generation later, our country is in the midst of a new health care crisis. Skyrocketing costs are pushing access to quality health care further out of reach for families, employers, states and the federal government. Today’s health care crisis threatens to make us all vulnerable.

“One of nation’s top priorities must be ensuring that all Americans have access to affordable health care. With businesses and individuals taking greater responsibility for themselves, this anniversary is a reminder of the unique and tremendous role of our elected officials.

“This fall, the American people will have the chance to hear from elected officials and candidates about their solutions to control health care costs. The next Congress and Administration will need to overcome gridlock to enact meaningful reform.

“We are looking back today, but only to help us look ahead.  Remembering the legacy of 1965 reminds us how important these issues are in 2008. And you better believe we’ll be watching in 2009.”

 July 22, 2008

July 25, 2008