Legislature Expands Drug Buying Pool

Gov. Kulongoski signed OSPIRG-backed Senate Bill 362 to further expand Oregon’s successful drug buying pool, the Oregon Prescription Drug Program, to the private sector.

In 2005, U.S. consumers spent $251.8 billion on prescription drugs, nearly $50 billion more than in 2003. Prices charged by drug-makers for brand-name pharmaceuticals jumped 3.9 percent in the first quarter of 2006—four times the general rate of inflation.

OSPIRG helped establish the Oregon Prescription Drug Program in 2003, leveraging the buying power of people in the program to negotiate lower prices. It delivers savings of up to 60 percent, and the discounted drugs are available at pharmacies around the state. Passage of measure 44 in 2005 opened the program to all Oregonians lacking drug coverage.

Senate Bill 362 brings the cost savings of this program to even more Oregonians by opening it to the private sector, giving businesses a helpful tool to reduce health costs without any additional cost to taxpayers.

Exposing College Textbook Industry’s Tactics

College students are paying too much for their textbooks, with prices skyrocketing at four times the rate of inflation, according to a new report released by OSPIRG and Oregon Student Association in February, “Exposing the Textbook Industry: How Publishers’ Pricing Tactics Drive Up the Cost of College Textbooks”

“Many students are already struggling to pay their way through college,” said OSPIRG Advocate Laura Etherton. “Rising textbook prices are making matters worse—the average student spends $900 on books each year—that’s 20 percent of the tuition and fees at a four-year public university.”

The new report confirms findings from earlier OSPIRG reports and highlights one cause for the artificially high prices—publishers don’t provide clear information about their prices to faculty.

The common practice of “bundling” textbooks (shrink-wrapping additional materials such as a CDROM or workbook to the text) also drives up the cost of textbooks. The study found that many professors are not able to order the book they want without the additional materials, even when they don’t intend to use them in class.

OSPIRG applauded on June 13 when the Oregon Legislature passed Senate Bill 365, sponsored by Sen. Walker, Sen. Morrisette, Rep. Greenlick, Rep. Chris Edwards and Rep. David Edwards to improve textbook price disclosure and give students the option to buy textbook products “a la carte” as well as bundled.

Cutting Excessive Subsidies To Oil And Gas Companies

We applauded the U.S. House of Representatives in January, as lawmakers voted 264 to 163 to pass the CLEAN Energy Act of 2007 (HR 6). The bill would invest more than $14 billion in renewable energy and energy efficiency, creating the funds by repealing tax breaks and subsidies for the oil industry.

“This legislation is good news for consumers and our environment,” said U.S. PIRG’s Kate Johnson.“Our dependence on oil can only mean wrenching price hikes in the years to come. We need to develop alternative fuels and we need to start now.”

Our staff helped write and promote the legislation, which was included in Speaker Pelosi’s “100 hours” agenda. The fund created by the bill could be used to promote energy efficiency, expand research and development of clean energy technologies, and extend tax credits for clean energy sources.