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Gov. Blagojevich announces plans to expand I-SaveRx program to state employees, retirees and others  Send a link to a friend

In letter to the FDA, governor vows that I-Save Rx will continue and expand operations despite finding by auditor general that it violates federal law

[OCT. 2, 2006]  CHICAGO -- Gov. Rod R. Blagojevich announced Sept. 19 that the state of Illinois will expand its innovative I-SaveRx drug importation program to state employees and dependents. Currently, the program is available and intended for senior citizens and the uninsured. It covers the citizens of Illinois, Kansas, Wisconsin, Missouri and Vermont.

The program's expansion will allow the state to reduce its annual prescription drug costs and reduce, and sometimes even eliminate, co-payments for state employees and dependents. Currently, co-payments on brand-name prescription drugs for those in the state's health insurance program range from $20 to $80. The expanded program for employees will be voluntary. Illinois was the first state in the nation to make safe, affordable prescription drugs from other countries available to its citizens.

The announcement comes in the wake of a report released Sept. 19 by the Illinois auditor general that the I-Save Rx program violates federal law. In a letter to FDA Acting Commissioner Andrew von Eschenbach, Blagojevich vowed to continue the importation program, which helps senior citizens and the uninsured afford the medications prescribed by their doctors.

Blagojevich wrote: "Please be advised that while we highly respect and very much appreciate our auditor general's work, and while we will implement as many of his recommendations as possible, we fully intend to continue allowing the people of Illinois to purchase safe, affordable medicine from approved pharmacies in Canada, the United Kingdom, Australia and New Zealand. We will not be bullied or pressured by the FDA into choosing drug company profits ahead of the basic needs of senior citizens and the uninsured.

"In addition, we are also going to move forward and expand the I-SaveRx program by making it available to state employees and dependents. Given that the state's annual costs for providing prescription drugs to employees, dependents and others (prisoners, patients in state facilities and others whose care is covered by the state) has increased by an average of 15 percent per year over the last five years, and given that employees and retirees often face brand-name co-payments of $40-$80, broadening the scope of I-SaveRx will help the taxpayers save money by reducing the state's prescription drug costs. It will also help employees save money because they would no longer have to make co-payments when the medication they need is available at far less cost from pharmacies in Canada, United Kingdom, Australia or New Zealand. As we implement as many of the auditor general's findings as possible for our program, we will keep those recommendations in mind as we expand the program to state employees, dependents and others."

The governor also called on the FDA to drop its stance opposing importation of prescription drugs and develop a national program that all states can participate in, rather than forcing states to construct their own programs -- programs that could conflict with local rules and forms that were created long before the concept of importation was envisioned.

Blagojevich wrote, "When states like Illinois take on a responsibility that ought to belong to the federal government, that requires creating a complicated program that will not be in lock step with every local rule and regulation created [in] a time before anyone envisioned the concept of reimportation of prescription drugs.

"No governor and no administration wants to incur audit findings saying that they are operating a program in violation of federal law. But when the choice is helping people afford the medicine they need or incurring audit findings, there's really no choice. Please understand that while we will do everything in our power to implement some of the auditor general's recommendations, we will not cease operation of the I-SaveRx program.

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"Your decision to make Plan B available over the counter indicates that you are willing to look at issues in a way different from your predecessors. Hopefully you will take a look at the FDA's policy opposing reimportation of prescription drugs and recognize that a national policy that helps our citizens access the global marketplace is the better approach."

The governor launched I-SaveRx in October 2004 to provide Illinoisans a safe and affordable way to purchase many of the most common name-brand prescription drugs from pharmacies in Canada and Europe, where they cost up to 70 percent less.

Under the expanded program, which will be in operation by spring 2007, employees who choose to fill eligible prescriptions through I-SaveRx will pay a reduced co-payment or no co-payment at all. Currently, participants in the state's health insurance programs pay anywhere from $20 to $80 in co-payments for brand-name prescription drugs, depending on whether the drug is on the state's formulary. If the prescription is for a maintenance drug, the patient is allowed only two retail fills; then they are required to use mail-order, or else they must pay $40 retail for a formulary drug and $80 retail for nonformulary. The co-pay for mail-order is lower: $40 for a three-month supply of a formulary drug and $80 for a three-month supply of a nonformulary drug.

Over the last five years, the state has seen its prescription drug costs increase by an average of 15 percent per year, far outpacing the cost of Medicaid, which increased in fiscal 2006 by just 1.4 percent -- the sixth-lowest increase in the nation. The same prescription drugs that are sold in the United States are available at prices up to 70 percent cheaper outside the United States. For example, Prevacid, a name-brand medication used to treat heartburn and acid reflux, costs 64 percent less in Australia than in the U.S., 55 percent less in the United Kingdom and 44 percent less in Canada.

Employees and taxpayers alike will benefit from the I-SaveRx expansion. State employees can save at least $160 annually on out-of-pocket costs for co-payments, while the state will be able to save hundreds annually on the cost of common maintenance medications that are filled through the importation program. For example, for each prescription, the state can:

  • Save $890 annually on Advair Diskus, used to treat asthma, when purchased from Australia.

  • Save $340 annually on Actos, used to treat diabetes, when purchased from the United Kingdom.

  • Save $1,017 annually on Casodex, used to treat prostate cancer, when purchased from Canada.

  • Save $250 annually on Nexium, used to treat heartburn and acid reflux disease, when purchased from the United Kingdom.

  • Save $675 annually on Zyprexa, used to treat mental health issues, when purchased from the United Kingdom.

Employees who use I-SaveRx will save at least $160 annually in co-payments.

A copy of the governor's letter to the FDA acting commissioner is available here. [To download Adobe Acrobat Reader for the PDF file, click here.]

[News release from the governor's office]


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