Calif. prescription drug ballot measures examined

Two rival ballot proposals which could lead to pressure on drug companies to lower prescription drug costs in California are the object of a heated political battle, according to media reports. Proposition 78, which is backed by unions and consumer groups, would require drug companies to provide discounts to people without insurance and incomes four times below the federal poverty level.

Proposition 79, which is sponsored by drug companies, would provide similar benefits on a slightly less generous schedule. The difference, according to analysts, lies in the leverage the state would have in enforcing the rules. The union backed plan would allow California to cut off Medicaid sales for companies which violate the regulations -- a punishment that could cost offenders billions. According to the California Secretary of State's office, pharma companies have already contributed $40 million to a war chest backing Proposition 79.

- see this story from The New York Times

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