Our View: Both discount drug measures contain fatal flaws

There is no question that California's health care system needs a major overhaul. Equally beyond doubt is that Propositions 78 and 79 would do more harm than good. Both deserve no votes on Nov. 8.

The chief danger in Prop. 79 is a provision that would further enrich the state's politically powerful trial lawyers by encouraging civil suits against pharmaceutical companies, filed by patients who thought prices for their medicines were "unreasonable." Of course, endless lawsuits, costing millions of dollars, would be required to establish what is "reasonable" for thousands of prescription drugs.

A promise of Prop. 79 is that the state would negotiate steep discounts on prescriptions from drug firms. A family of four making $77,000 a year or less would get discount cards that could be used at neighborhood pharmacies.

Discounts are a good idea. However, the consumer advocates who drafted the ballot measure fouled up: If a drug firm refused to offer big-enough discounts for state bureaucrats, Prop. 79 would ban Medi-Cal from buying the firm's products. That means our poorest residents, who rely on Medi-Cal for health care, could be refused life-saving treatments in the name of punishing a drug company.

These are fatal flaws. Prop. 79 would impose price controls on California's pharmaceutical industry —— including San Diego County's world-famous biotechnology hub —— and delegate enforcement of the scheme to trial lawyers. Worse, the measure would take poor people as hostages in discount negotiations with drug companies.

The troubles with Prop. 78 are subtler but still warrant its rejection.

Like its running mate, Prop. 78 would create a state-managed drug discount program. It would reach fewer people; only uninsured people making $58,000 a year (for a family of four) or less would qualify. Proponents say discounts would average about 40 percent, about what big health insurance companies get for their members' prescription plans. Participation by pharmaceutical firms in the discounts would be purely voluntary.

It is a decent idea, but there is nothing to stop drug makers or pharmacies from offering cheaper medicine to the uninsured right now. The observation that they don't offer such discounts raises serious questions about how many would volunteer to join a state-run program.

Another thing: Drug companies sponsored the initiative, and they reportedly have poured $80 million into its promotion. It's worth asking why.

Our best guess is that Prop. 78 is designed to kill the health care reform discussion that is already on life-support in Sacramento. If the measure passes, it will be much harder for the Legislature to require deeper discounts as part of some future health care reform package.

If this is Big Pharma's strategy, it cynically exploits California's policy gridlock. Well-funded interest groups know they can block legislation by threatening a ballot initiative, and politicians know they can dump hard decisions onto voters.

The upshot is that complex issues don't get the thoughtful consideration and effective compromises that a well-functioning Legislature should provide. Instead, the important stuff ends up in poorly constructed ballot measures, sold to voters with deceptive television ads.

This collective failure of our state representatives has hurt schools, sapped infrastructure and led to chronic fiscal crisis for more than a decade. Now the health care system is in trouble. Emergency rooms are shutting down, more families are uninsured, and private employers are struggling with exploding costs.

Propositions 78 and 79 would shove medicine into California's political mess. A pox on both of these measures.