There is a need for statutory or legislative initiatives that allow timely access and availability of generic drugs.  Frankly though, Mr. Speaker, Congress has been dragging its feet.  Congress has been so negligent in ensuring proper entry of generics to the market, that states are beginning to act on their own, as we see with the Governor's resolution.

The Governor's resolution expresses concerns about the 1984 Hatch-Waxman Act.  Part of the intent of the Hatch-Waxman Act was to lawfully improve consumer access to lower-priced generic drugs.   The problem, Mr. Speaker, is that loopholes within the Hatch-Waxman Act are being taken advantage of and preventing the availability of generic drugs to enter the market.  Brand name companies have become proficient in manipulating the Hatch-Waxman law and launching aggressive campaigns to block or delay generic alternatives from reaching the market.  

The Governors are concerned that these elements within the Hatch-Waxman Act may actually be contributing to the rising cost of prescription drugs and the resolution asks Congress to explore this issue.

In addition, the Governors raise a valid point that during this time of tight state budgets, a national deficit and an economic recession, states are burdened by Medicaid costs, which are on the rise due to the soaring costs of prescription drugs.  With prescription drug costs rising at a rate of up to 18% annually, states' Medicaid drug costs represent the fastest growing health care expense for states, employers, and consumers across the nation.  

USA Today reported that the Business for Affordable Medicine, a coalition of governors, businesses and labor unions, stated that certain reforms to the Hatch-Waxman Act could save state Medicaid programs $600 million in prescription drug costs over the next three years.  According to the coalition, states spent about $1.2 billion in 2001 on 17 drugs, including the allergy medicine Claritin, the asthma drug Flovent and the cancer treatment Lupron.  The coalition said that the $600 million figure is the amount of savings that would occur if these 17 drugs were replaced by generic alternatives that would be allowed to enter the market.  

The inclusion of generic alternatives in the marketplace is great for consumers, employers and government purchasers because generic competition provides access to less expensive, therapeutically equivalent generic versions of brand name drugs.  Mr. Speaker, I fully support the Governors resolution and the intent to improve access to generic drugs. I encourage Congress to take the lead of the Governors here in Washington, DC and to pursue this important issue.