Membership on the LA-Rx Steering Committee
The next step in creating the LA-Rx program will be the formation of a steering committee to oversee the drafting of a Request for Proposal (RFP) setting forth what the City of Los Angeles wants the LA-Rx program to be able to do, so that various private companies can submit bids/proposals offering their services to implement the program.
This LA-Rx Steering Committee, according to the legislation that authorized the LA-Rx program, will consist of members coming from these categories:
1) City of Los Angeles Personnel-Employee Benefits Division;
2) City Administrative Office, Risk Management;
3) City Attorney's Office;
4) Health Care Expert with expertise in bulk purchasing, prescription
drugs, and/or health policy
5) Health care expert with expertise in pharmacy;
6) Health care expert from County Health;
7) Health plan consultant with expertise in pharmacy benefits
management (knowledge of how PBM's work, what they do, and how pricing
works);
8) Consumer advocate; and
9) Expert in Medicare and Prescription Drug Issues for Seniors
The process of selecting and appointing the LA-Rx Steering Committee members according to these categories is the responsibility of the
Personnel Department of the City of Los Angeles.
LA-Rx implementation timetable
Here's the timetable for the implementation of the LA-Rx program:
1. Convene Steering Committee within 30 days of May 4, 2005 (by June
3, 2005)
2. Status report within 60 days of date the Steering Committee first
convenes.
3. Final report and RFP for Council approval within 120 days of date
the Steering Committee first convenes.
What LA-Rx is and who might implement it
According to Samantha Waterman, Policy Deputy in the office of Los Angeles City Councilmember Antonio Villaraigosa, the essence of the LA-Rx program will be the creation of a "virtual group" whose members will be entitled to use a "prescription drug discount card."
The administration of this program, and the making of arrangements with major pharmaceutical companies, pharmacies, and other players involve processes and procedures not easily delegated to any existing type of operation.
Accordingly, the RFP to be drafted by the LA-Rx Steering Committee is intended to elicit proposals from a variety of private companies, including PBM (prescription benefit management) companies and, possibly, SRM (supplier relationship management) companies, as well
"How LA-Rx Would Work"
To access the background information sheet prepared by Councilmember Villaraigosa's office, called "How LA-Rx Would Work," click
here.
The Politics and Economics of Bulk Purchasing
The LA-Rx program is an example of a "limited, modified
monopsony" or
"oligopsony."
For an in-depth discussion of how consumers can lower the prices they have to pay for commodities, including cable television service, telephone service, broadband Internet access, and digitized media content, such as movies, with Jerry Flanagan, consumer advocate at Foundation for Taxpayer and Consumer Rights, click
here.
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