How the Federal Government's Drug Discount Programs Could Work Better for Family Planning Centers

Publicly funded family planning centers have long struggled with the seemingly ever-rising cost of contraceptive supplies and other pharmaceuticals. It is true that they have also long benefited from discounts on these drugs from manufacturers eager to foster brand loyalty among young women. Yet manufacturers appear to be retreating from these voluntary discounts, as health insurance companies push their generic competitors and direct-to-consumer advertising has emerged as a more attractive sales strategy (related article, Fall 2006, page 2). Providers are increasingly dependent on the power of the federal government to ensure that they can acquire pharmaceuticals at prices that will not shatter their budgets. A 2009 study conducted jointly by The Lewin Group and the Guttmacher Institute found that although family planning centers do make use of the options provided by the government, they also face a wide range of problems in maximizing these discounts. That finding poses an obvious next question: What more might the federal government be able to do to help providers overcome these problems?