• Maine became the first state in the nation to pass a law that would have allowed the government to negotiate lower prescription drug prices. The program would have allowed government price controls to be imposed in three years if prices did not decline. When challenged in court by the Pharmaceutical Research and Manufacturers of America (PhRMA), an organization representing about 100 drug companies, a federal judge put the law on hold saying it would likely be tossed out as unconstitutional.
• New Hampshire, Vermont, and Maine have agreed to organize a regional buying pool to negotiate lower drug costs and to provide discounted prices. The first multi-state drug-buying pool in the country, the program is expected to cut prescription drug prices 23 to 35%.
• New York, Rhode Island, New Jersey, Illinois, and Massachusetts have approved major expansions of existing programs allowing higher income seniors to buy discount drugs.
• The Health Care Financing Administration (HCFA) approved an extension of an existing Medicaid demonstration program in Vermont implementing a drug discount program. Vermont became the first state in the nation with a pharmaceutical program as part of Medicare. Under the plan 37,550 Medicare beneficiaries will be eligible to buy prescription drugs at discounted prices through the state`s Medicaid program. PhRMA sued the Federal Government in a bid to halt the program.
• California and Florida now require most pharmacies to sell medications to Medicare beneficiaries at the same rate they charge the state Medicaid program.

Sources: ``States Pass Laws to Help Elderly Secure Medicines,`` Rachel Zimmerman, The Wall Street Journal, September 15, 2000. ``Vermont Gets Waiver to Extend Drug Discounts to Seniors,`` Reuters Health, November 7, 2000. ``Three Governors Announce Next Move to Lower Drug Costs,`` Mike Recht, The Associated Press, October 24, 2000.