Ahead of WH Meeting: Don’t Be Fooled By Big Pharma’s Spin
WASHINGTON, D.C. — Big Pharma has spent millions of dollars on a full-court press to stop the Trump administration from implementing an International Pricing Index for one reason: The plan will lower drug prices in America. Today, industry lobbyists will meet with administration officials to press their case that Americans should continue to pay twice what other countries pay for drugs.
“We have no doubt the drug corporations will dust off their favorite scare tactics — like ‘rationing medicine,’ ‘reducing access,’ and ‘socialism,’” said David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now. “But the claims are outrageous, offensive, and wrong.”
Here are the facts:
FACT CHECK: PhRMA’s False Claims About the Medicare Part B demonstration
MYTH #1: The Part B demonstration will restrict access to lifesaving drugs. FACTS:
All protected classes of drugs in Medicare will be maintained.
HHS: “We propose no changes to the Medicare benefit, just more discounts from drug companies.”
Bloomberg: “The aim is to drive down the cost of those medications by 30 percent.”
There is no evidence the Part B demonstration would harm patient accessto drugs unless drug corporations choose to withhold drugs from patients.
HHS: The proposal is to “lower drug prices—without any restrictions on patient access.”
The Part B demonstration does nothing to slow the FDA approval process or change U.S. incentives for new drug approval.
Multinational drug corporations will still want early access to the largest market and higher prices in the U.S.
It would not change “regulatory incentives such as accelerated approval and priority review mechanisms” which Forbes points out play a key role in early approval in the U.S.
Americans ration drugs today based on price.
NPR: “Insulin’s high cost leads to lethal rationing.”
CDC: “Among adults with diagnosed diabetes who were prescribed medication in the past 12 months, 13.2% did not take their medication as prescribed, and 24.4% asked their doctor for a lower-cost medication.”
Vox: “It means that our system, even if we don’t like to admit it, has to pick and choose who gets access to lifesaving drugs.”
MYTH #2: The Part B demonstration will establish drug prices that are impossibly low — stifling innovation, damaging drug companies and hurting our health system. FACTS:
Americans would still pay Pharma more for drugs than other developed countries.
The New York Times: “A government study that said Medicare was paying 80 percent more than other advanced industrial countries for some of the most costly physician-administered medicines.”
Secretary Azar: “Over the next five years under this model, we will go from paying 180 percent of what other countries pay for these drugs to 126 percent of what they pay.”
Lowering prices in Part B will have little to no impact on innovation.
National Academy of Sciences: “NIH funding contributed to published research associated with every one of the 210 new drugs approved by the Food and Drug Administration from 2010–2016. “
HHS: “The possible savings American patients would receive over five years represents less than 1 percent of pharmaceutical R&D spending during that time; and the pharmaceutical industry has offered no evidence of that amount having a meaningful impact on innovation.”
Drug companies can easily make that up by reducing advertising and marketing spending.
Washington Post: “Nine out of 10 big pharmaceutical companies spend more on marketing than on research.”
JAMA: “From 1997 through 2016…DTC prescription drug advertising increased from $1.3 billion to $6 billion with a shift toward advertising high-cost biologics and cancer immunotherapies.”
MYTH #3: The demonstration will result in worse care for patients. The government should not replace a market-based system with government price setting. FACTS:
We do not have a market-based system in the United States. Our system is completely based on laws and regulations.
Avik Roy, Foundation for Research on Equal Opportunity: “Medicare Part B does not represent a “free market” for prescription drugs. Instead, the program uses government-administered reimbursement rates to pay for drugs. The structure of this system is far removed from how a true market would work.” Peter Bach, MD, Director of Memorial Sloan Kettering’s Center for Health Policy and Outcomes: “There is no free market for prescription drugs in the U.S. The U.S. system of drug pricing is completely built on a foundation of government imposed laws and regulations that grant monopolies and market power to large players.”
JAMA: “High drug prices are the result of the approach the United States has taken to granting government-protected monopolies to drug manufacturers, combined with coverage requirements imposed on government-funded drug benefits.”
The 16 countries used for reference by and large have betterhealth outcomes and longer life expectancy than the U.S., while spending about half as much per capita for health expenditures.
Central Intelligence Agency: Of the 16 other developed economies in the IPI, Americans have shorter life expectancies than 13 of them: Austria, Belgium, Canada, Finland, France, Germany, Greece, Ireland, Italy, Japan, Spain, Sweden, and the United Kingdom.
World Bank: Of the 16 other developed economies in the IPI, Americans spend more on health care as a percentage of GDP thanall of them: Austria, Belgium, Canada, Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Japan, Portugal, Slovakia, Spain, Sweden, and the United Kingdom.
The current system is broken.
CNN: “Americans pay anywhere from two to six times more than the rest of the world for brand name prescription drugs.”
Wall Street Journal: “Compared with the U.S., drug prices are far lower in many overseas countries…Critics have long held that the [U.S.] percentage-based ‘add-on’ fee creates incentives for doctors to use higher-priced drugs.”
MYTH #4: Americans do not support the Part B proposed changes. FACTS:
According to a GOP pollster, Americans overwhelmingly support the International Pricing Index to lower drug prices.
Voters support the HHS proposal to lower drug prices by a 71-point margin (80 percent support vs. 9 percent oppose).
Majorities from both parties agree that Democrats and Republicans in Congress should support the proposal.
Notably, 8 in 10 voters believe the proposal will result in better care or have no impact on the care they receive.
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30-50 feral hogs couldn’t drag us away from bringing you all the news in drug pricing!
1. They Lied
Novartis lied to the FDA, then brought forth the world’s most expensive drug. Classic. — (CNN)
2. We (Already) PAID
The public needs more protection from Big Pharma profiteering off of billions in taxpayer funded drug research. — (Vox)
3. Authorized Scam
Brand drug manufacturers make “authorized” generics, products that only serve to maximize the monopoly drug makers’ profits and stifle realcompetition. — (Kaiser Health News)
4. “How many more young type 1 diabetes patients have to die…?”
Another young man lost his life due to outrageously high insulin costs, which doubled between 2012 and 2016. — (The Washington Post)
5. Boo, Hiss
Lifesaving antivenins face very little competition — so prices continue to rise. — (NPR)
Have a wonderful weekend!
WASHINGTON, D.C. — With the introduction of the bipartisan We PAID Act of 2019, federal lawmakers are taking a stand today to assure drug companies set reasonable prices for prescription drugs funded with taxpayer investment. The We Protect American Investment in Drugs Act (We PAID), sponsored by Senators Chris Van Hollen (D-MD) and Rick Scott (R-FL), would allow for the creation of an independent body representing taxpayers to engage the pharmaceutical industry on drug pricing and limit annual price increases when taxpayer-funded research leads to the creation of a new drug. In response to the news, David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now, issued the following statement:
“The We PAID Act will help American patients get innovative new drugs supported by taxpayer investment while ensuring fair prices at the pharmacy counter. We are grateful for the leadership of Senators Chris Van Hollen and Rick Scott. As a patient with incurable cancer who lives with hope for a cure that will be in reach of all Americans, this legislation carries special significance.
“The National Institutes of Health (NIH) is the world’s single largest funder of biomedical science supporting research and development of some of the most innovative and expensive drugs. New cell and gene therapies based on science paid for by taxpayers through the NIH are coming to market at prices ranging from $400,000 to more than $2 million — prices that are unsustainable.
“The We PAID Act aims to establish a process to ensure these new drugs not only are invented but are priced to maximize public health. We look forward to working for its enactment with members of Congress in both chambers.”
BACKGROUND:
Eighty percent of Americans say Congress’s top priority should be action to lower drug prices. (Politico)
All of the 210 drugs approved by the Food and Drug Administration from 2010-2016 were based on science funded by taxpayers through the NIH. (Proceedings of the National Academy of Sciences)
Around 400 clinical trials are underway for gene therapies that will be used to treat much larger populations. (Alliance for Regenerative Medicine)
A report by Patients For Affordable Drugs details how taxpayers invested at least $300 million into a potential cure for sickle cell disease and encourages the NIH to ensure final price accounts for public investment. (P4AD)
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Now that you’re done binging the new season of Queer Eye and the Senate Finance markup, it’s time to catch up on your drug pricing news.
Welcome to the Week in Review in prescription drug pricing!
1. Wicked Big Win
A bipartisan budget deal will grant the Massachusetts Secretary of Health the power to negotiate lower prices for prescription drugs in the state’s Medicaid program. — (Boston Globe)
2. Aging Out
Young adults living with diabetes are rationing insulin and dying when they age out of their parents’ insurance plans. — (Buzzfeed)
The Senate Finance Committee unveiled a long-awaited package of drug pricing reforms that cap seniors’ out-of-pocket drug expenses at $3,100 and discourage Big Pharma from increasing the prices of prescription drugs at multiple times the rate of inflation each year. Patients will battle Big Pharma influence to see it through. — (Politico)
4. Patients Take the Stand
Patient advocates testified this week before the House Committee on Oversight and Reform, illuminating for Congress the harm high drug prices inflict on American families. — (CSPAN)
5. Celgene Slammed
The drug maker has to pay $55 million to settle a class action lawsuit over alleged attempts to block generic competition, providing some restitution to those hit by Celgene’s sky-high monopoly prices for cancer medications. — (New Jersey Globe)
BOSTON — Governor Charlie Baker and Massachusetts lawmakers became national leaders in the fight to lower drug prices this week. Lawmakers struck a bipartisan budget deal that grants the state the power to negotiate lower prices for prescription drugs in the state’s Medicaid program. Under the new program, the state can negotiate lower prices if a drug costs MassHealth $10 million a year or more than $25,000 per patient per year.
“Prescription drug spending in MassHealth has nearly doubled in the last five years, and Massachusetts residents have suffered under relentless price hikes,” said David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now. “We applaud Governor Baker, the state’s legislature, and consumer groups for taking a bipartisan stand. The budget’s success signals to states across the nation that working together we can bring Big Pharma to the negotiating table and get a better deal for state residents.”
The state’s $43.1 billion budget includes provisions to:
Give the Secretary of Health and Human Services the ability to negotiate directly with drug manufacturers over the price of some of the most expensive drugs in Medicaid.
Allow the HHS Secretary to analyze the value of a drug.
Hold public hearings regarding the price of the expensive drugs.
The program is expected to save taxpayers $80 million next year from negotiations with drug corporations. In support of the effort, Patients For Affordable Drugs Now ran a six-figure campaign backing changes to curtail runaway drug pricing. The campaign included:
Video ads on YouTube, Facebook, Twitter, and across local digital platforms that told the story of a Massachusetts resident who couldn’t afford the price of her life-saving drugs.
Digitaltools that allowed Commonwealth residents to contact legislators via letters, Facebook, and Twitter in support of the measures.
Blogs that elevated the voices of localpatients to demonstrate the human toll of high-priced drugs on Commonwealth residents.
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WASHINGTON, D.C. — In response to the news that the Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) released a slate of reforms to lower prescription drug prices for patients and taxpayers, David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now, issued the following statement:
“Americans are demanding action to lower drug prices, and the Senate Finance Committee has taken an important step forward with its proposals today. Most importantly, the Prescription Drug Pricing Reduction Act of 2019 would discourage Big Pharma from increasing the prices of prescription drugs at multiple times the rate of inflation each year. It would also cap seniors’ out of pocket costs in Medicare Part D at $3,100 annually. These changes will help the most vulnerable citizens afford prescription drugs, save taxpayers money, and hold the line on drug price and premium increases.
“The package protects innovation and maintains patient access to innovative drugs. And, by capping increases at the rate of inflation, it ensures that we don’t have to pay huge increases on initial high launch prices of drugs.
“Other elements of the package are significant, including the increase in the rebate cap and limits on spread pricing by PBMs in Medicaid.
“We urge members of the Senate Finance Committee to advance this package. Members of Congress must guard at every turn against changes that would weaken the bill. Voters have given Congress a mandate to lower drug prices, and patients can’t afford to wait any longer.”
BACKGROUND:
While we are encouraged by many of the changes the Senate Finance Committee has proposed, we also have a number of questions and concerns. We are hopeful the Committee will consider changes that:
Ensure patients benefit from inflation-based rebates in Medicare Part B and D.Under the current draft, if a pharmaceutical manufacturer increases list prices for certain drugs above inflation, drug companies must pay a rebate to HHS and thus the Medicare Supplemental Medical Insurance Trust Fund. We hope the committee will clarify how patients will experience savings from the rebate if a drug company gouges Medicare beneficiaries.
Avoid burdening state Medicaid programs with extraordinarily expensive drugs. The current problem in our system isn’t Medicaid’s inability to pay for drugs over time — it’s the high price of drugs set by drug corporations. States already have flexibility to implement unique payment models, and the bill (including Section 208) does little to lower the list price of drugs that are bankrupting state Medicaid programs.
Lower the list price of drugs: The bill could go much further to address the list prices of prescription drugs. America continues to pay two to three times more than other countries for the same prescription drugs because our government does not negotiate to get the best possible deal for citizens, unlike every other developed nation.
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What’s hotter in D.C. right now — drug prices or the heat index?
AbbVie’s abusive tactics to maintain its monopoly on its $20 billion blockbuster, Humira, thoroughly dissected. — (Fortune)
WASHINGTON, D.C. — Patients For Affordable Drugs Now today placed a six-figure ad buy in support of the administration’s proposed reforms to Medicare Part B that will lower drug prices and reduce patient out-of-pocket costs. As part of the campaign, TV and digital ads will tell the story of Ruth Rinehart, a cancer patient who went bankrupt and lost her home due to the price of her Part B prescription drugs. She urges Congress and the Administration to move forward and implement an International Pricing Index.
Watch the ad here. The six-figure buy will begin today. It will air on “Fox & Friends” and nationwide on YouTube, Twitter, and other digital platforms.
“Big Pharma is trying to stop President Trump from delivering on his promise to bring U.S. drug prices in line with what other nations pay,” said David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now. “Drug corporations deployed all the usual scare tactics and threats to stop this powerful proposal. We are redoubling our efforts to see that it is implemented.”
Currently, Americans pay far more for prescription drugs than other wealthy nations. Under the draft proposal from the Department of Health and Human Services, the price Americans pay for expensive infused drugs in Medicare would fall from 80 percent more than other wealthy nations to only 26 percent more. The proposed rule is currently under review by the Office of Management and Budget. The drug industry has consistently attacked the proposal because the changes would lower prices while ensuring patient access to drugs.
Today’s media buy is part of Patients For Affordable Drugs Now’s ongoing campaign in support of the HHS’ International Pricing Index proposal. The campaign, which launched in January, includes TV and digital advertisements, patient fly-ins, polling, and videos featuring patients who stand to access more affordable drugs under the proposal.
By a 71-point margin, voters support HHS’ proposal to lower drug prices in Medicare Part B by implementing the International Pricing Index (80 percent support vs. 9 percent oppose). Majorities from both parties believe Democrats and Republicans in Congress should support the proposal that would lower prices for infused drugs administered in physician offices and hospitals. Importantly, eight in 10 voters believe the proposal will result in better care or have no impact on the care they receive. Click here to read the poll.
“Ruth” SCRIPT
I’ve had primary immune deficiency for over 25 years.
When we couldn’t afford my drugs any longer, we filed for bankruptcy and lost our home.
There’s a proposal in Washington to bring prices in line with what other countries pay.
It would lower the price of our most expensive drugs by 30 percent.
The International Pricing Index would be good for patients like me.
Contact your elected official. Tell them to support Trump’s plan to lower drug prices.
