Erie County Comptroller Mark C. Poloncarz today commented on the news that following his office's December 2008 report recommending that Erie County ("County") create a countywide prescription drug discount card program, the Collins Administration has awarded a contract to ProAct, Inc. ("ProAct"), the pharmacy benefit management subsidiary of Kinney Drugs based in Gouverneur, NY, to create such a program.

Poloncarz's intentions in producing his December 2008 report included helping county residents save money while ensuring they have access to affordable prescription medications to meet their medical and health care needs.

Poloncarz said, "Today's news by the Collins Administration that it intends to retain ProAct and establish a discount prescription drug card program is welcome. I am especially pleased that the County Executive abandoned his original plan to hire an unknown Florida marketing company with little-to-no experience – and is not a pharmacy benefit management company – as the County's official discount card provider, and select an experienced New York based pharmacy benefit management company. This new program will enable our uninsured and underinsured residents to save money by making prescription drugs available at a reduced cost and with no cost to Erie County itself. This is a win-win program for all."

While complimenting the Collins Administration for finally acting to pursue a discount prescription drug card program, Poloncarz questions whether the Collins Administration intends to seek legislative approval from the Erie County Legislature ("Legislature") as required.

In April 2009, the Collins Administration worked with the Comptroller's Office and issued a request for proposals ("RFP") for a firm to administer a discount prescription drug card program. However, after issuing the RFP, the Collins Administration refused to provide the Comptroller's Office or Legislature with copies of the RFP responses or to answer questions about the RFP review process, firms that responded to the RFP, and award criteria. The Collins Administration also refused to provide any data to, or answer questions from the Comptroller's Office. Then in June 2009, the Collins Administration awarded a contract for the program to a Florida marketing company, Financial Marketing Concepts, Inc., based on the fact that this firm would provide a "rebate" or payment to the County.

The Comptroller's Office questioned the reasons that the Collins Administration did not solicit or receive responses from any national or regional pharmacy benefit management companies ("PBM") with well-known credentials and records of success in offering discount card plans such as ProAct or other more-known entities such as Caremark, the PBM of CVS pharmacy which operates a national program endorsed by the National Association of Counties. The Comptroller's Office also questioned the credentials and capability of the Florida company which is not a pharmacy benefit management firm nor has a known background in such programs especially in New York State.

Ultimately, based on a lack of transparency and concerns about the winning vendor and process conveyed by the Comptroller, the Legislature declined to act to approve the Collins Administration's contract with the Florida company. In March 2010, the Collins Administration requested that the Legislature receive and file their 2009 request to retain Financial Marketing Concepts, thereby terminating the concept of the program.

Poloncarz noted that while Collins failed to conduct a new RFP, based on ProAct's background and experience, he has no concerns about the capability of the firm. The Comptroller noted that ProAct is providing a discount prescription drug card program to more than twelve (12) other counties in New York, including Albany, Onondaga and Broome. He also noted that the New York Association of Counties has endorsed ProAct's discount prescription drug card program.

Poloncarz said, "Increasingly more Americans are relying on prescription drugs to maintain their health at a time when drug prices are rising rapidly, making needed drugs financially unaffordable. Government can and should help to make these pharmaceuticals available to individuals and families who need them, especially when there are programs available which provide these drugs at a reduced cost to the consumer with no underlying cost to the sponsoring government for participating in the program."

Nassau County's discount card program, initiated by its former county comptroller has reportedly saved its county residents more than $9 million since its inception in July 2004.

"Our analysis of the range of government, pharmaceutical industry, private, and non-profit prescription drug discount card programs strongly suggests that Erie County's residents and taxpayers will benefit, both medically and financially, from the county's establishment of a program similar to Nassau County's program," Poloncarz concluded.

A copy of the Comptroller's 2008 report on prescription drug discount cards can be found on the Internet at http://www.erie.gov/comptroller/pdfs/prescription_drug_card_report_11-08.pdf.