WASHINGTON, D.C. — Today, President Trump signed into law a government spending bill that includes bipartisan prescription drug pricing reforms long supported by Patients For Affordable Drugs Now. The provision known as Q1/Q2, previously included in the Lower Costs, More Transparency Act, and the PBM reforms incorporated in the package are key steps toward lowering prescription drug prices by strengthening competition and increasing transparency in the drug supply chain.
Merith Basey, CEO of Patients For Affordable Drugs Now, released the following statement:
“We’re encouraged to see the inclusion of several bipartisan reforms in today’s spending package that patients fought hard for. The U.S. is in urgent need of a prescription drug system that serves patients, not one that rewards middlemen and entrenched monopolies. Strengthening competition and increasing transparency are key to lowering prescription drug prices. One in three Americans is unable to afford their prescriptions, and Congress must go further to tackle the root causes of high drug prices and rein in Big Pharma.”
The package includes:
- Q1/Q2 Provision, Lower Costs, More Transparency Act
- Addresses a critical barrier to generic drug approvals by requiring the U.S. Food and Drug Administration (FDA) to provide clearer guidance on ingredient differences, helping generic manufacturers bring more affordable alternatives to market faster.
- The CBO estimates this reform would save taxpayers $871 million over 10 years.
- When a single generic drug enters the market, it can drive down the cost of a medication by 39%, with six or more reducing the cost by 95%.
- PBM Reforms
- Delinks PBM revenue from the price of a drug in Medicare Part D, reducing incentives to steer patients toward higher-priced drugs.
- Requires PBMs to report pricing and other key data to Part D plan sponsors, increasing transparency and accountability.
These measures were previously included in the bipartisan health package that nearly passed in December 2024.
Looking ahead, patients continue to call on Congress to take more aggressive action to lower prescription drug prices. While increased PBM guard rails are a meaningful first step towards increasing accountability and transparency, it will not independently solve the problem of high drug prices or rein in pharmaceutical monopolies.
Patients continue to urge lawmakers to confront more of the practices that keep drug prices high — including patent thickets, product hopping, and pay-for-delay deals — and to advance bipartisan competition reforms that would shorten monopoly periods and speed lower-cost generics and biosimilars to market.
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Patients For Affordable Drugs Now is the only national, patient advocacy organization focused exclusively on policies to lower drug prices. We empower and mobilize patients and allies, hold accountable those in power, and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4ADNow is bipartisan and does not accept funding from organizations that profit from the development or distribution of prescription drugs. To learn more, visit: PatientsForAffordableDrugsNOW.org