Gov. Ritter Signs First Executive Order, Directs State to Establish Preferred Drug List

GOV. RITTER SIGNS FIRST EXECUTIVE ORDER, DIRECTS STATE TO ESTABLISH PREFERRED DRUG LIST

Measure to save at least $1.6 million yearly on Medicaid drug purchases

Gov. Bill Ritter today signed his first executive order and directed the state to establish a Preferred Drug List for the purchase of prescription pharmaceuticals for Medicaid clients.

Ritter said establishing the list will save taxpayers 2 percent to 5 percent on the bulk purchase of Medicaid pharmaceuticals.

"At a minimum, we believe we can save $1.6 million a year," Ritter said during a signing ceremony at the state Capitol surrounded by dozens of supporters and lawmakers.

"A Preferred Drug List allows us to leverage our buying power to obtain lower prices for pharmaceuticals. The savings can then be re-invested back into delivering valuable health-care services to more people," the governor said. "This is a great example of how we can operate government more efficiently and cost effectively."

Joan Henneberry, executive director of the Department of Health Care Policy and Financing, said she expects the list will be established by Jan. 1, 2008.

"This will allow us to obtain the best prices on the most effective drugs for Colorado's Medicaid patients," Henneberry said. "Creating the list is also the first step toward joining a multi-state drug purchasing pool, which will reduce the amount the state spends on Medicaid pharmaceuticals."

About 398,000 Coloradans are enrolled in the Colorado Medicaid program, and Ritter said the state spends $96 million a year on the types of medications that typically are included on the Preferred Drug List.

"I'm looking forward to an open and transparent public-input process to establish the list," Ritter said. Consumers, physicians, pharmacists and others will be invited to join the Health Care Policy and Finance Department's Pharmacy and Therapeutics Committee, which will make recommendations about which drugs should be on the list.

"We will make sure vulnerable populations are protected and able to receive their necessary medications," the governor said.

The signing of today's executive order is part of Ritter's long-term plan to address health-care costs, quality and access for all Coloradans. "By working together, we are going to create a Colorado Health Plan that speaks to the needs of the 770,000 Coloradans who currently lack health coverage," Ritter said.

http://www.colorado.gov/governor/press/january07/drug-list.html