Drug program may cut free drugs

WASHINGTON, Jan. 27 (UPI) -- Some 1 million U.S. adults who last year relied on pharmaceutical firms' prescription drug giveaways may have to pay about $3,600 under the new drug program.

Pharmaceutical companies had been donating billions of dollars worth of prescription drugs to low-income people, but drug makers have sent out letters saying that as of Jan. 1, anyone eligible for Medicare would be dropped from the program, the Washington Post reported Friday.

"These are individuals who did have something before; they had patient assistance programs," said John Coburn, senior policy analyst for the Chicago-based Health & Disability Advocates. "We are seeing the unintended consequences of (the new Medicare drug coverage) law."

Drug companies say they are precluded from continuing to donate drugs to those who cannot afford them, because a Bush administration legal opinion suggested companies could be prosecuted under anti-kickback laws if they provide free drugs to Medicare beneficiaries.

In 2004, the pharmaceutical industry donated $4.1 billion worth of drugs, said Ken Johnson of the Pharmaceutical Research and Manufacturers of America.