Oregon proposes new office to enhance pharmaceutical purchasing and reduce costs

Oregon lawmakers are looking to reform the state's pharmaceutical purchasing system, inspired by Ohio's successful implementation of a Single Pharmacy Benefit Manager (SPBM). During a recent meeting of the House Committee on Behavioral Health and Health Care, discussions highlighted the significant financial benefits Ohio has experienced since launching its SPBM in 2022. The program has reportedly saved Ohio taxpayers $333 million in administrative costs and improved reimbursement rates for local pharmacies, with per prescription payments rising from 73 cents to over $9.

Representative Travis Nelson emphasized the potential for Oregon to adopt a similar model, noting that Ohio's SPBM has led to a more inclusive pharmacy network, with over 99% of pharmacies participating. This shift has not only saved money but also enhanced access for patients and pharmacies alike, particularly benefiting independent providers.

In response to rising pharmaceutical costs, House Bill 3613 was introduced to create an Office of Pharmaceutical Purchasing within the Oregon Department of Administrative Services. This office aims to streamline purchasing across multiple agencies and improve the state's negotiating power for prescription drugs. The bill seeks to address the fragmented purchasing practices that currently exist, which have been criticized for benefiting pharmaceutical companies at the expense of local providers and taxpayers.

Charlie Swanson, an expert on the topic, presented details of the bill, highlighting the need for a centralized resource to manage drug purchasing effectively. He noted that Oregon is projected to spend $6 billion on pharmaceuticals in 2025, with a significant portion going to retail drugs. The proposed changes aim to create a more efficient system that could lead to substantial savings for both the state and its residents.

As Oregon considers these reforms, the committee expressed a commitment to exploring how the state can implement a more effective pharmaceutical purchasing strategy, drawing lessons from Ohio's experience. The anticipated outcomes include improved access to medications, better support for local pharmacies, and ultimately, a reduction in costs for Oregonians.