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State governments, which have suffered deep cuts in health-care funding from Washington, are also taking action. With pharmaceutical costs in his state jumping as much as 18% annually since 1985, John Alquest, who oversees the $31 million Kansas Medicaid program, has developed a bidding program for six frequently used drugs, including the antibiotic cephalexin and the asthma drug theophylline. He was able to log savings of $400,000 last year. Pharmaceutical companies have lobbied the Kansas legislature to block the program, but at least a dozen other states are considering similar measures...

Author: /time Magazine | Title: The Price Isn't Right | 1/8/1990 | See Source »

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