New Democrat Update - April 2001
PRESCRIPTION DRUGS
The ever-rising costs of prescription drugs is forcing too many families into excruciating budgetary decisions. Unbelievably, state lawmakers may pass legislation to increase costs even more!
As a way to contain costs, insurance plans often offer policyholders mail-order pharmacy options, especially for the chronically ill who rely on long-term maintenance medications. Volume discount purchasing and reduced overhead allow mail-order pharmacies to provide the same drugs at lower cost. As a cost-saving incentive, insurers give enrollees better deals if they use mail-order services.
Rather than fighting it out in the marketplace, retail pharmacists have chosen to respond by legislatively neutralizing the lower-cost advantages of mail-order pharmacies. House Bill 1320 is a price-control measure that forces mail-order costs upward to the level of retail prices. In other words, patients will no longer have this lower-cost option.
After reviewing the bill, David Kendall, Senior Fellow for Health Policy of the DLC's Progressive Policy Institute, said by extending "the principles articulated in the preamble, you'd have to block Amazon.com from undermining local bookstores, Ebay from usurping local classifieds, and on-line reservation systems from taking business from local travel agents. Such thinking would have protected ice delivery men from the refrigerator."
Largely as a result of knee-jerk opposition to the pharmaceutical drug and insurance companies, House Democrats (by a margin of 20 to 6) proved to be the difference in passing this bill in the House. Instead of being concerned with which industry "wins or loses," Democrats should keep their eye on the ball - solutions that best serve the interests of senior citizens and others who purchase prescription drugs.
Lawmakers should be approving ideas that empower consumers with choice, competition, and information. Market-oriented solutions will further decentralize decision-making, spur innovation, reward efficiency, and respect personal choice.
For example, to expand prescription drug coverage and give marketing clout to senior citizens, the legislature should pass Sen. Bob Hagedorn's SB143. The bill creates a purchasing group that negotiates discounts and subsidizes the price of drugs for low-income senior citizens.
As another way to reduce costs, Gov. Owens and the legislature should explore requesting a Bush administration waiver from Medicaid's "best price" rule. The rule requires a drug company to offer the same discounts to state Medicaid programs and private insurance plans.
That severely limits the discounts private insurers, hospitals, clinics and chain pharmacies can negotiate with drug companies. While well-intentioned, this mandated price control has turned into a price floor rather than a ceiling.
The Senate should say no to drug price-control proposals that stifle innovation, freeze in place old habits and practices, and slow the adoption of new ideas for more cost-effective care. Killing House Bill 1320 is a good first step.
DEBATING DEMOCRATS
Some analysts, including Rocky Mountain News columnist Charles Roos, have recently been arguing that New Democrats are set on abandoning the party's traditional "base" in favor of appealing to the "rising learning class" - high-tech workers and suburban voters. In our view, they falsely believe it has to be one or the other.
As demonstrated by a Colorado DLC statewide poll three years ago, large majorities of rank-and-file Democrats are New Democrats. In addition to attracting significant numbers of unaffiliated voters, a New Democrat agenda and message actually unifies the interests of the middle class and those less fortunate rank-and-file Democrats. In fact, advocating traditional liberalism significantly splinters Democrats and is certain to chase away middle class and unaffiliated voters.
For example, over 80 percent of Colorado Democrats in the poll rejected going back to a FDR New Deal-style government focused on protecting people from adversity. Instead, almost two-thirds preferred a DLC-like, empowering government that helps people equip themselves to solve their own problems. Similarly, almost 80 percent of Democrats (and importantly, the same percentage of unaffiliated voters) believe the best solutions to Colorado's challenges come from the political center.
Without question, it is still important for Democrats to do very well with working-class voters. However, as the demographics make clear, they are a rapidly declining portion of the total electorate. In contrast, the learning class is rapidly growing.
The so-called dilemma of choosing between the "base" or swing vote represents another classic false choice. A "Third Way" agenda attracts the support of both.
JOBS WELL DONE
Our congratulations go to Rep. Dan Grossman, Sen. Stan Matsunaka, Sen. Ed Perlmutter and former US Attorney Tom Strickland and Rep. Suzanne Williams. Each of these New Democrats are making a big difference.
In early March, Grossman was named the national "New Democrat of the Week." As House Minority Leader and co-chair of the Colorado DLC, he has been a very effective advocate for New Democrat causes like ensuring work pays more than welfare, increasing investments in early child development and providing law enforcement officers access to the DNA fingerprints of violent felons.
We are especially proud of Matsunaka (also co-chair of the Colorado DLC) and Williams for pushing character education in public schools. Williams has already gotten it through the House and Matsunaka is poised to do the same in the Senate.
While the game is far from over, Perlmutter's work to maintain Colorado's high quality of life also deserves praise. Despite the lack of any help from the Governor's Office, the Senator's skillful legislative shepherding of his smart growth bill through the state Senate offers hope that the Colorado legislature might finally do something about growth.
Finally, Strickland's work for the past two years has been a true boost to local law enforcement efforts. New Democrats especially liked his initiative "Project Exile," which enforced existing gun laws and prosecuted crimes committed with firearms.