Welcome to the Week in Review: Inflation Reduction Act Edition
Big weekend in the Senate and a big weekend for drug pricing – as Leader Schumer begins the voting process for the Inflation Reduction Act, we want to be sure you are up to speed on the drug price reforms and just how historic they are. Here’s where things stand:
1. Senators Rally Around Reconciliation
- On Thursday, nearly a third of the Democratic Senate caucus, including Majority Leader Schumer, joined advocacy groups on Capitol Hill for a press conference calling for passage of the Inflation Reduction Act, including the drug price reforms. “Let me just say that corporate price gouging has been taking a big chunk out of Americans’ pockets for a long time,” Senator Stabenow said at the press conference. “We’re standing with the American people to bring down the cost of their medicine.” Majority Leader Schumer added, “With the Inflation Reduction Act, Senate Democrats are delivering on lower prices on prescription drugs…this is a very, very, very, very big deal.” President Biden is prepared to sign this package when it reaches his desk, fulfilling a promise and bringing relief to millions. As The New York Times put it yesterday, “Democrats’ Long-Sought Plan for Lowering Drug Costs Is at Hand.” – (LCV, The New York Times, CNBC, Axios)
2. Big Pharma Is Running Scared
- Big Pharma is using every scare tactic in its book to attempt to throw a wrench in Democrats’ plans to pass the historic drug price reforms in the Inflation Reduction Act. David Mitchell, cancer patient and founder of Patients For Affordable Drugs Now, sent a letter to Democrats in Congress countering the drug lobby PhRMA’s letter to Capitol Hill that was filled with industry lies meant to intimidate members of Congress as they sprint toward a vote on the legislation. This week, other key experts debunked the industry’s ever-growing lies. A new report from the Committee for a Responsible Federal Budget (CRFB) found that the economic impact of the drug price reforms would be “very deflationary,” and 126 top economists agreed, discrediting Big Pharma’s claim that “prescription drug prices are not fueling inflation.” The drug industry also doubled down on its argument that the reforms will make generic drugs less likely to come to market — a claim that is simply untrue as the Medicare negotiation provisions actually promote generic and biosimilar competition. The CRFB was the latest group to debunk pharma’s lie that the drug price provisions will strip $300 billion from Medicare, when in reality the government would save nearly $300 billion while expanding benefits, improving health, and saving patients and taxpayers billions. — (P4ADNow, P4ADNow, CRFB, CNN, Axios, CRFB)
3. Advocates Aren’t Backing Down
- Yesterday, 77 organizations representing patients, consumers, seniors, unions, small businesses, employers, physicians, nurses, and disease advocacy and human rights organizations sent a letter to all Congressional Democrats urging them to immediately pass the historic prescription drug price reforms included in the Inflation Reduction Act. “Congress can make history in the next week by passing the most expansive and powerful reforms to help Americans afford prescription drugs since enactment of the Medicare Part D benefit in 2003,” the letter reads. Small business owners are also speaking out about the ways the drug price provisions would improve their businesses by driving down health care costs and allowing them to stay competitive. Protect Our Careand AARP are each airing ads lauding the drug price reforms and urging Congress to pass them despite drug company opposition. — (P4ADNow, Forbes, Protect Our Care, AARP)
4. Patients and Seniors Are Ready For Relief
- The three key prescription drug price reforms in the Inflation Reduction Act have more bipartisan support than any of the provisions in the bill with each reform garnering support from over 70 percent of voters. Patients, seniors, and providers know the reforms would be life changing, especially for individuals prescribed the most expensive drugs. Jackie Trapp faces over $10,000 a year in out-of-pocket costs for her cancer and heart medications and told NBC news, “I am likely to leave my husband all alone sooner than I would like, but now I fear of leaving him bankrupt as well.” If Congress follows through on its plan to pass the package by the end of next week, Jackie’s costs would soon be limited to no more than $2,000 each year. AARP Pennsylvania state president wrote, “Big Pharma has been price gouging seniors for too long. This is the Senate’s opportunity to fix the unfair system that’s rigged against Americans.” We couldn’t agree more. — (CBS News, Morning Consult, Deseret News, Missoula Current, NBC News, Union-Sun & Journal, Bradford Era)
5. RECAP: How Reforms Will Impact Patients
- The drug price provisions will lower prices for Americans who need relief. Authorizing Medicare to negotiate prices directly for some of the most expensive prescription medicines will help patients like Steven Hadfield in Charlotte, NC, who lives with a rare cancer and type 2 diabetes and has to work multiple jobs to afford his medications. Under the drug pricing package, expensive drugs he takes, such as Januvia, would likely be eligible for Medicare negotiation, bringing lower prices for Steven and savings for Medicare. Instituting a cap on out-of-pocket drug costs for Medicare beneficiaries will help patients like Jackie Trapp of Muskego, WI, who takes Revlimid (priced at more than $200,000 each year) to treat her blood cancer. “The price of these drugs has had a huge impact on our lives,” said Jackie. “When I heard about the $2,000 cap, I was almost too afraid to hope.” Limiting annual price increases to stop price gouging by drug corporations will help patients like Lynn Scarfuto, a retired nurse in Herkimer, NY, who takes Imbruvica to treat her leukemia. “Although I have Medicare, the monthly list price of Imbruvica is $14,956,” Lynn shared. “I don’t have the financial resources to pay for it.”
We’re around all weekend if you’re working on a story and want to connect with a patient or policy expert. Let’s get it done.