| SENATE MAJORITY OFFICE State Capitol
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News Release
February 8, 2012
CONTACT: Molly Woon (503) 986-1074
Senate Health Care Committee moves bill to expand cost-savings program
SB 1577 will save valuable taxpayer dollars spent on prescription drugs
SALEM – The Senate Health Care, Human Services, and Rural Health Policy Committee passed a bill this afternoon that will save tax dollars by requiring state agencies to participate in the Oregon Prescription Drug Program (OPDP). The program saves money by uniting Oregon’s prescription drug purchasers to leverage the best prices on the most effective medicines.
“Senate Democrats are focused on protecting critical services and getting the greatest value out of every dollar,” said Senate Majority Leader Diane Rosenbaum (D-Portland), chief sponsor of the bill. “Legislation like Senate Bill 1577 allows us to find savings that can be directed to protect important services like classroom instruction, public safety and in-home care for the low-income elderly.”
SB 1577 requires state agencies to participate in OPDP unless the agency can demonstrate that alternative purchasing agreements will result in greater discounts and aggregate savings. Last session, the Legislature required the Department of Corrections, the largest state agency not participating in OPDP, to report on how much money the agency would save by making their purchases through OPDP. That report showed that the Department could save as much as $1.4 million a year based on analysis of roughly half of the DOC’s drug purchases.
“Just like a lot of middle class families that are struggling right now, the Legislature has to do more with less,” said Senator Laurie Monnes Anderson (D-Gresham), chair of the committee. “This bill is common sense. SB 1577 takes a program that has been wildly successful in saving Oregonians money on health care costs and applies it to all state agencies, compounding both savings and efficiency.”
The bill now goes to the Committee on Ways and means for consideration.
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For more information on the Senate Majority Caucus, please visit www.orsenatemajority.org