The opposition
The group opposed to Issue 2 is called Ohioans Against the Deceptive Rx Ballot Issue.
The campaign is entirely funded by major drug manufacturers through the Pharmaceutical Research and Manufacturers of America, or PhRMA, a drug industry trade group. They’ve been called out by Issue 2 supporters for hiding how much each of PhRMA’s 37 member companies has donated, but the No campaign said it’s being very clear — the campaign is funded by big pharma.
More than 70 statewide organizations — including many that frequently oppose big pharma on other issues — have endorsed a no vote on Issue 2. The groups include the Ohio State Medical Association, Ohio Hospital Association, Ohio Pharmacists Association, AMVETS of Ohio, the Ohio Chamber of Commerce, and the Ohio Manufacturers’ Association.
They argue that Issue 2 is unworkable because it doesn’t take into account differences in how the VA and state programs like Medicaid actually work. And while it aims to control costs to the state, the law wouldn’t have any authority over prices charged in the rest of the supply chain.
“It’s unworkable because we literally cannot find out what those lowest (VA) prices are. But even if we could, and we were able to do it, there’s no guarantee that the pharmaceutical companies are going to give (Medicaid) those lower prices. It doesn’t force them to sell it at that lower price,” said John McCarthy, former Ohio Medicaid director under Gov. John Kasich, who has conducted an analysis of Issue 2 for the opposition.
If the pharmaceutical companies refuse to give the state lower prices, but those programs are required by law to spend below a certain cap, cost shifting to other areas will occur, McCarthy maintains. That could include higher co-pays for state employees and retirees, lower reimbursements to pharmacies causing them to drop out of Medicaid, or a reduced number of drugs offered on state formularies, his analysis says.