Proposed Prescription Drug Discount Plan Could Extend Beyond Los Angeles

A proposed prescription drug discount plan for the city of Los Angeles could expand throughout Los Angeles County, into Ventura County and the Southern California region, the Ventura County Star reports.

Under the plan -- which current Los Angeles Mayor Antonio Villaraigosa (D) proposed in 2004 as a city council member -- a benefit manager would purchase drugs at a bulk rate and sell them to residents at discount prices by negotiating with drug manufacturers and wholesalers. Residents would have a prescription drug card that they could use for an estimated discount of about 20%.

Uninsured residents or insured residents with high premiums and no prescription drug coverage would gain the most from the plan, Tom Coultas, assistant general manager of the city's personnel department, said. He added that a consultant's report and recommendation on the plan are expected to be submitted to the Los Angeles City Council by November.

Jerry Flanagan, of the Foundation for Taxpayer and Consumer Rights, said that having more participants in the program would make it possible to negotiate greater discounts (Bruce, Ventura County Star, 10/27).