Latest News | Feb 1, 2024

STATEMENT: Patients For Affordable Drugs Now Celebrates Historic Step Towards Lowering Drug Costs

CMS Takes On Big Pharma And Makes First Offers To Manufacturers Of The First Ten Drugs Selected For Drug Price Negotiation To Lower Prices For Prescription Drugs

Patients For Affordable Drugs Now, applauds the Centers for Medicare & Medicaid Services (CMS) as it takes the huge next step towards negotiating fair prices for essential medications. Today, CMS sent out its initial fair pricing offers to pharmaceutical manufacturers for the first 10 drugs selected for Medicare negotiations.
 
The 10 drugs chosen were identified as the top spending drugs covered under Medicare Part D without generic or biosimilar equivalents that have been on the market for at least seven years and also meet other selection criteria. These essential medications include cancer treatments, blood thinners, autoimmune disease treatments, and some diabetes drugs. Between June 2022 and May 2023, 8.3 million Medicare Part D enrollees used one or more of these medications. With 84 percent of voters backing Medicare negotiations, it’s clear CMS is doing work that is urgently demanded by the American public. 
 
Merith Basey, Executive Director of Patients For Affordable Drugs Now, released the following statement:
 
“Patients For Affordable Drugs Now stands firmly in support of Medicare negotiation and efforts to curb the unjustified costs of prescription medications. We hear from patients everyday who are grappling with the crushing weight of exorbitant drug prices, forced to make impossible decisions between their health and financial well-being. We’ve listened to stories of people rationing insulin or other life-sustaining medications just to make ends meet. By advancing this process of direct negotiation with drug companies, CMS is helping ensure that fewer people will have to make these tough choices. Drugs don’t work if people can’t afford them, and today marks a historic milestone in the fight to lower drug prices for everyone.”

Background in Medicare negotiations:

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Welcome to the Week in Review.

1. Fighting Against Lawsuits To Stop Negotiations

On Wednesday, January 31st, oral arguments will be heard in AstraZeneca’s legal challenge against Medicare’s ability to negotiate the price of the company’s diabetes and heart failure drug, Farxiga. Amidst this legal battle, Patients For Affordable Drugs Now (P4ADNow) has thus far signed onto seven amicus briefs led by Public Citizen and supported by AARP, Protect Our Care, Doctors for America, and Families USA to support the government’s opposition and explain the harm high drug prices have on people on Medicare. Meanwhile, by February 1st, the Centers for Medicare & Medicaid Services (CMS) are set to dispatch initial offers to the manufacturers of the first 10 drugs selected for negotiation. Drugmakers will then have 30 days to agree on the maximum fair price or provide a counteroffer. This next step marks a historic stride towards lower negotiated prices for millions of people on Medicare in 2026 and increased access to medications at prices they can afford.  — (O’Neill InstitutePublic CitizenALM BenefitsPro)

2. Big Pharma Greed: Wheeling and Dealing

New figures show that drug corporations are pulling in record profits and have been cashing out on billion-dollar biotech deals. Johnson & Johnson, manufacturer of three of the drugs selected for Medicare negotiation, announced $4.8 billion in Q4 earnings which is nearly double their earnings from the previous year, according to Accountable.US. Sanofi, one of the big three insulin makers that monopolize the industry, announced a multi-billion dollar acquisition of a biotech company, making it the sixth drugmaker buyout valued at $50 million or more this year. Despite all the huffing and puffing from drug industry CEOs about recent drug price reforms slowing down investment, Big Pharma is making huge returns on drug sales and new drug development is doing just fine! In fact, a report published by S&P Global Ratings projects that the global pharmaceutical industry will have “healthy revenue growth through 2027.” It’s clear that drug corporations put profit over the well-being of patients and we’ll continue to expose their shady behavior until everyone can access medications at prices they can afford.  — (Accountable.USBiopharma DiveS&P Global)

3. Push For Competition

Big drug companies exploit our patent and regulatory systems to extend their monopolies and keep prices high, at the expense of patients. Big Pharma wields anti-competitive tactics like patent thickets and pay-for-delay deals to extend their timed monopolies and block competition from the market. Right now, there is a critical window of opportunity to pass legislation to curb these patent abuses and bolster competition to lower drug prices for all patients. These competition bills have critical bipartisan support from influential legislators: “Some of the most liberal Democrats in Congress and the House GOP’s lead budget writer are backing a plan to keep drugmakers from gaming the patent system,” wrote Axios reporter Peter Sullivan. Patients urgently need legislators to pass these reforms to curb anti-competitive practices and strengthen market forces to drive down steadily increasing drug prices. — (Chicago TribuneReutersEndpointsAxios)

Welcome to the Week in Review.

1. Pushing for Transparency

In the health care policy arena, the focus centers around the passage of the Lower Costs, More Transparency Act (HR 5378). With bipartisan backing, this legislation seeks to increase transparency and affordability in healthcare pricing practices. One important provision of the bill requires the Food and Drug Administration (FDA) to streamline the approval process for generic drugs by mandating that the FDA explain to generic drug companies why their applications were not approved and therefore better enable them to address issues that might stand in the way of their future approval. If passed, this provision would not only help increase competition but is also projected to result in over $800 million in cost savings. Facilitating generic entry is a key step toward reshaping the pharmaceutical landscape to lower costs for patients. Ironically, current negotiations between the House and Senate underscore the lack of transparency in the dynamics themselves that are shaping healthcare policies for patients. (MoneyTalks News, STAT News)

2. Easing the Burden for People on Medicare

In a significant development for many people on Medicare, the 2022 Inflation Reduction Act cap on out-of-pocket expenses for Part D drugs has gone into effect. This year, many individuals on Part D plans and who only take brand-name drugs will pay no more than $3,300 out of pocket annually for their medications, eliminating the 5 percent coinsurance after reaching the catastrophic spending threshold. The cap is expected to bring relief to approximately 1.5 million people, leading to substantial savings for patients. By 2025, the cap will further decrease to $2,000. In a piece from the Wall Street Journal, Patients For Affordable Drugs patient advocate Judy Aiken, who faced over $9,000 in out-of-pocket costs last year for her medication, Enbrel, expressed relief, emphasizing the positive financial impact of the cap on her well-being. David Mitchell, founder and president of P4AD, highlighted the remarkable savings this change brings and the crucial protection it offers to people on Medicare. These savings come at the same time as a notable escalation in list prices for a range of widely prescribed medications, including those by pharmaceutical giants like Novo Nordisk and Eli Lilly. This is despite the outlier in some of the older and competing insulins which saw a January 1 price drop for some of their older competing insulins timed to avoid paying additional rebates and following years of patient advocacy to lower the price of insulin. (KFF, WSJ, P4ADNow, NPR, Forbes, WSJ, CNN)

BONUS: Public Citizen and AARP, both prominent advocates for lowering drug prices, have released reports this week. Public Citizen’s report emphasizes the pharmaceutical industry’s disingenuous opposition to drug pricing regulations, revealing that major drug manufacturers spent billions more on activities such as stock buybacks and executive compensation than on research and development. Meanwhile, AARP’s Rx Price Watch series provides a comprehensive analysis of prescription drug pricing trends, highlighting the staggering annual costs faced by Americans, particularly older adults, and the disproportionate impact on people on Medicare. These reports are important tools for the ongoing conversation on drug costs and the need for comprehensive reforms. (Public Citizen, AARP)

Welcome to the Week in Review.

1. Urgent Need for Drug Negotiations

2. New Bipartisan Legislation Targets Patent Thickets

3. Debunking Pharma’s Claims

BONUS: Senate Democrats, led by Sen. Bernie Sanders, are investigating soaring asthma inhaler costs. The probe addresses the stark U.S. price disparities, emphasizing concerns for patients who often face high costs and rationing. The inhalers sell for hundreds of dollars in the U.S. but much less abroad. (The Hill)

Welcome to the Year in Review.

Over the last 12 months, our community has been at the forefront of amplifying patient voices in the fight to lower drug prices, fighting back against pharma lies, and advocating for bills that will increase competition and reduce patent abuses. From launching the Push for Competition with AARP alongside key allies to supporting the continued fight to ensure the successful implementation of the drug price provisions in the Inflation Reduction Act, our daily efforts have centered on uplifting patient voices and holding those in power to account so everyone in the United States can get the prescription drugs they need at prices they can afford. Highlights from the year include: 

1. Patient Advocates Celebrating the Popular Drug Price Reforms

2. Push For Competition Launch And Building Momentum

3.  Spanish Language Program Expansion

4.  Reports Driving Change

Meanwhile, keeping pace with the ongoing developments, here’s a snapshot of the latest events in the world of prescription drug pricing.

1.  Capping the Cost of Insulin

2.  Importing Rx From Canada

On Friday, the Food and Drug Administration cleared the way for Florida to become the first state in the country to import prescription drugs from Canada. The following statement was issued by Merith Basey, executive director of Patients For Affordable Drugs Now in response to the decision: 

“The FDA’s approval today of Florida’s plan to import cheaper prescription drugs is yet another reflection of the fact that drug prices in the U.S. are simply too high and Americans need relief. Unfortunately, state-by-state importation from Canada is not a workable solution for all of us who need lower prices. Canada can’t supply all our drug needs and the pharmaceutical industry won’t ship Canada enough drugs to turn around and send them to the U.S. The Canadian government is not going to send drugs to the U.S. if it creates shortages in Canada. We need workable federal solutions that will lower prices for everyone in the U.S. like expanded Medicare negotiation and reforms to stop drug company abuse of our patent system that blocks competition and keeps prices high for all of us. The Inflation Reduction Act was a historic start but there is more work to do. There are bipartisan bills in Congress right now that would move us forward and enjoy overwhelming public support.”

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Welcome to the Week in Review.

1. Pharma’s Legal Assault on the Inflation Reduction Act

2. AbbVie’s Tactics Highlight Need for Pharmaceutical Reforms

3.  Rising Healthcare Costs and the Push for Affordable Medications

Patients For Affordable Drugs will be closed through January 1st. Wishing you peaceful and restorative holidays and we look forward to sharing some exciting new updates in the New Year! 

My name is Grace Shults, I am 23 years old, and I am from Columbus, Ohio. 

My story with high prescription drug costs started when I was just a teenager in high school. I had gotten really sick all of sudden and went undiagnosed for years, which only until later revealed I had Lyme disease – I was puking all the time and easily got sick – It wasn’t until recently that I was also diagnosed with gastroparesis, a disorder that slows or stops the movement of food from your stomach to your small intestine. Because of these health issues, I’ve had to take antibiotics and a drug called Motegrity, which after partial insurance coverage, has been an issue to afford. 

I grew up in a single parent household, where my personal health issues were essentially the big elephant in the room while my mother constantly scrambled financially. Though I thankfully was covered under my father’s health insurance plan and still am today, having ongoing medical issues was a financial burden that has caused undue stress for years.

Personally, the combination of Lyme disease, gastroparesis, and the other health issues it has created for me does not make life any easier. Because of my symptoms, there were times I was not eating or simply could not get myself to eat because of the pain I would later undergo. After trialing a couple of medications, I successfully landed on Motegrity, which has a list price of $505.40, which has provided consistent relief thus far at a cost of $165 per month out-of-pocket. Along with my other medications that I need, I pay on average $250 a month and try to get as many free samples from my doctors that I can. I consider myself disabled because of my health condition, am currently in school studying psychology and work remotely part time, which makes affording my medications a lot harder than most would think. 

Socially, my life has also been impacted by the interconnection of my health and the medications I can afford. To put it simply, my social life is contingent on my health. I feel as if I do not have as many friends anymore while it is difficult to maintain a good social life while experiencing the many debilitating symptoms I confront on a regular basis. I am 23 years old and I should not feel alone in this way. 

When faced with the question of why I believe in more affordable drugs, my answer is straightforward. I care because people need these medications to function. Affordable healthcare is not a privilege, it is a basic human right. We, the people, are not asking for crazy ludicrous things from society, we simply are asking for affordable medications to function in our society and live comfortable lives. I have seen family members before me struggle with affording their medications and now join them in this hurdle; it should not be this way at all. If Big Pharma made prescription drugs more affordable, they would still be profiting billions of dollars, all the while people would die and their health would decline. 

Whenever I would imagine my future life, I never thought public health was for me, but my story has motivated me to pursue a career in this field. It is time for lower prescription drug prices.