By Bonnie Washuk,Staff Writer

AUGUSTA – A federal court ruled Friday in favor of Maine’s first-in-the-nation prescription discount program – again.

The ruling is good news for Maine consumers, Gov. John Baldacci said. It means the Maine Rx Plus program, now available in 119 pharmacies and used by 100,000 Mainers, will continue and become stronger with the “cloud” of court action lifted, Baldacci said.

“This sends a message to the pharmaceutical industry that they can’t have their way, that states do have a role and can use that role,” Baldacci said. He read a few lines from Friday’s court’s decision, which said, “It is not this court’s role to protect PhRMA’s (Pharmaceutical Research and Manufacturers of America) members from the marketplace. PhRMA’s members remain free to refuse to grant a rebate to the state of Maine under the Maine Rx Plus program.”

Now, Maine Rx Plus drug discounts between 10 to 15 percent from pharmacies, not manufacturers, which is why only 119 out of 280 pharmacies offer the program.

The court ruling gives Maine the green light to negotiate with drug manufacturers and provide deeper discounts for citizens, said Trish Riley, who heads the Governor’s Office on Health Policy and Finance.

Maine has 20 drug makers on board ready to negotiate, said Jude Walsh, who works for Riley. With Friday’s ruling, she expects more talks with more drug makers.

“We’ve got meetings with pharmaceutical manufacturers throughout the month next month. Hopefully having the cloud of court activity being lifted, this will bring in the rest of pharmaceutical manufacturers who’ve been hesitant, pending a court decision, to participate.”

In 2000, Maine lawmakers passed Maine Rx, a prescription drug discount program for all without drug coverage. Initially the law tried to get 40 percent discounts, as deep as what the Veterans Administration receives from drug makers.

Less than two months later PhRMA sued Maine, eventually bringing the case to the U.S. Supreme Court. The case was heard in Washington, D.C., on Jan. 22, 2003.

On May 19, 2003, the court ruled that Maine Rx was legal and Maine could proceed. Worried about future court action, Gov. John Baldacci amended the program, renaming it “Maine Rx Plus.” The new program only allowed those with moderate incomes without drug coverage to qualify.

PhRMA proceeded with court action challenging Maine’s “prior authorization” part of the law that says drug companies that don’t give discounts to Maine Rx Plus members could lose Maine’s Medicaid business. PhRMA argued that federal approval was needed for that.

On Friday, the federal court disagreed, dismissing PhRMA’s lawsuit.

Maine hasn’t used prior authorization, what Riley called “the stick” with drug manufacturers. “We get to keep it as a tool,” Baldacci said. The state is finding more progress with drug makers using negotiations rather than prior authorization, but “having it there puts pressure indirectly on those discussions,” Baldacci said.

Last year 139,000 prescriptions were filled in the Maine Rx Plus programs. Most of those prescriptions were for high blood pressure, diabetes and thyroid conditions.

“These are working people who don’t have a pharmacy benefit who have chronic illness,” Walsh said. “It’s nice the state has a program to lower drug costs for them.”

Maine will continue to be a national leader in seeking affordable drug prices for citizens, Baldacci said, adding the state is working with other states to create a large purchasing drug pool.

Friday’s ruling prompted a number of calls to Maine from other states interested in creating a program similar to Maine’s.

“I’ve spoken to governors’ offices today in Georgia, New Hampshire and Arkansas, and with the California state legislature,” Walsh said. Those states all have Maine Rx Plus-type bills pending. “You’ll just see more and more programs modeled after Maine Rx in the United States,” Walsh said.