It’s official: On Tuesday, President Biden made history by signing into law the Inflation Reduction Act, which will lower prescription drug prices and cap out-of-pocket costs for at least 50 million Americans on Medicare. “President Biden, along with Democrats in the Senate and House, fulfilled their promises to the American people by standing firm in the face of assaults from Big Pharma and passing unprecedented reforms,” sharedP4ADNow founder David Mitchell. “As a result, they have changed the trajectory of drug pricing in the United States.” The President penned an op-ed in Yahoo News before the event, writing, “The big drug companies spent nearly $100 million to beat this law. We prevailed.” He’s right – “this was unquestionably the biggest political loss Pharma has suffered,” Henry J. Kaiser Foundation’s Larry Levitt told HuffPost. P4ADNow’s Lucy Westerfield spoke with Spectrum News about the monumental change. “It’s going to be really enormous relief for patients on Medicare, patients who have high costs on their Medicare plans,” Westerfield said. “But also, it’s going to fundamentally change the way that pharmaceutical manufacturers have control over our pricing nationwide.” (Money.com, P4ADNow, Yahoo News, HuffPost, Spectrum News)
2. Hats Off To Patients For Advancing Popular Rx Policy
Following the President’s signing of the Inflation Reduction Act, P4ADNow founder David Mitchell sent a letter and video to our incredible patient community, thanking them for fighting for these reforms. “I cannot emphasize this enough: The victory would not have been achieved without tireless advocacy from people such as yourself. Your dedication to sharing your real, lived experiences and to write a letter or make a phone call made it possible to reach policymakers in Washington and counter the power of the drug companies; you are the force behind these reforms. Thank you.” It’s no wonder hundreds of thousands of patient advocates rallied around the drug price reforms – they are the most popular component of the Inflation Reduction Act, according to a new Politico-Morning Consult poll. Another poll released this week by Navigator Research reports that 81% of Americans support capping out-of-pocket costs on prescription drugs for seniors, 81% of Americans support capping insulin costs for seniors at $35 per month, and 80% of Americans support giving Medicare the power to negotiate for lower prescription drug prices. Americans know what they want, and patient advocates know how to get it done. (P4ADNow, P4ADNow, Politico, Navigator)
3. Drug Price Reforms In Action
Now that the Inflation Reduction Act has been signed into law, experts, news outlets, and advocates are diving into the details of each drug pricing provision and what relief will look like for patients. Articles explained how drug companies will be penalized if their price hikes out-pace inflation, ensuring costs are kept in check for seniors, and how Medicare will finally have the power to negotiate lower drug prices with pharmaceutical companies. The $2,000 out-of-pocket cap on drug costs, which will start in 2025, will help patients like GinnyBoynton in Pennsylvania who is currently taking a drug with a six-figure price tag to treat her Lambert Eaton Myasthenic Syndrome. At an event with Senator Casey this week, she shared, “that provision alone will ensure that I can take my Firdapse as intended, and will save me thousands of dollars every year.” And on a podcast, P4ADNow’s Sarah Kaminer Bourland discussed in detail the insulin provisions, which will limit insulin copays to $35 per month for Medicare beneficiaries. Experts also highlighted that seniors aren’t the only ones to benefit, as these reforms are expected to affect the commercial market. “Medicare is a leader in health policy and payment models, and what they do really trickles out,” influencing other segments of the market, Sarah Kaminer Bourland explained. (Boston Globe, Center for American Progress, Kaiser Family Foundation, New York Times, WGAL, PennLive, Diabetes Connections, MarketWatch)
One More Thing: Prior to the House vote on the Inflation Reduction Act, P4ADNow founder David Mitchell sat down with Rachel Cohrs of STAT to discuss the work leading up to this monumental moment and his plans for the drug pricing fight ahead. You can check it out here.
Have a great weekend, everyone!
WASHINGTON, D.C. — The following statement was issued by David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now, in response to President Biden signing the Inflation Reduction Act into law:
“President Biden made history today by signing into law the Inflation Reduction Act that will lower prescription drug prices and out-of-pocket costs for millions of Americans. President Biden, along with Democrats in the Senate and House, fulfilled their promises to the American people by standing firm in the face of assaults from Big Pharma and passing unprecedented reforms. As a result, they have changed the trajectory of drug pricing in the United States. We are grateful for the President’s commitment to the issue and for delivering relief to millions of Americans.
“Patient advocates across the country who shared their personal experiences of the burden of high drug prices made this monumental victory possible. We are humbled and energized by patient advocates’ power to move the will of Congress. Our work to ensure all patients can afford the medications they need will continue.”
Read a letter from David Mitchell to our community of patient advocates here.
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Something remarkable happened this week: You changed the course of history.
Because of you and this community of patients, families, and allies, Congress passed and the President signed into law historic legislation that will lower prescription drug prices for millions of Americans.
For the first time ever:
Medicare will be required to negotiate directly with drug companies for some of the costliest drugs and use its purchasing power to get a better deal for Americans.
We will curb price gouging by imposing a penalty on drug companies that raise their prices in Medicare by more than the rate of inflation.
There will be an annual out-of-pocket cap in the Medicare prescription drug program of $2,000 when there is no cap now, cutting costs enormously for patients who currently can wind up paying more than $15,000 out of pocket every year.
Medicare beneficiaries who rely on insulin will have their insulin copays capped at $35 per month.
Big Pharma — with more than 1,500 lobbyists on Capitol Hill — fought these reforms with all its might, spending at least $56 million on advertising and more than $100 million on lobbying in the past year. It lied about the impact of the legislation, tried to scare patients with dire warnings that new innovative drugs would not be available, and even directly threatened members of Congress. We overcame all of it because of you.
Our community and the American people rose up and said Enough! And finally, after years of effort, we overcame the most powerful lobby in the country. The legislation does not include everything we hoped for, but make no mistake — it changes the trajectory of drug prices and policy in the United States. It finally begins to break the power of multinational drug corporations to dictate prices of brand name drugs to the American people.
I cannot emphasize this enough: The victory would not have been achieved without tireless advocacy from people such as yourself. Your dedication to sharing your real, lived experiences and to write a letter or make a phone call made it possible to reach policymakers in Washington and counter the power of the drug companies; you are the force behind these reforms. Thank you.
We thank the members of the House and Senate and President Biden who stood with patients to achieve this hard fought victory. There is more work to do to lower drug prices for all patients, including many members of this community. Our work is not done, and we will not stop here — we will keep fighting for all patients whose prices are too high.
More importantly please remember, this victory shows we can make progress, we can achieve meaningful change to help millions of Americans. Together we will continue the work to reform our system in order to make it work better for the people it is supposed to serve — rather than the people who profit from it.
Thank you for being a part of this movement.
Best wishes,
David Mitchell
The Week in Review in Prescription Drug Pricing
? ? ? Welcome to the Week in Review.
1. A New Era For Drug Prices
The day we’ve all been waiting for arrived! Yesterday, Congress made history by passing the historic drug price provisions in the Inflation Reduction Act that will lower prescription drug prices and out-of-pocket costs for millions of Americans. “With this legislation, we have changed the trajectory of drug pricing policy in the United States,” said P4ADNow founder David Mitchell. “We have finally begun to break the power of multinational drug corporations to dictate prices of brand-name drugs to the American people.” We are so grateful to our patient community for their tireless work, and to Democrats for getting this legislation over the finish line. ? — (P4ADNow)
2. A Payoff for Patients
Patients across the country are heaving a sigh of relief this week as the drug price reforms in the Inflation Reduction Act passed Congress. Over 1.4 million seniors on Medicare will save money with the $2,000 limit on out-of-pocket costs for medications. For MS patient Bob Miller, the out-of-pocket cap will offer “peace of mind” and allow him to go back on Betaseron, a medication to delay the progression of his neurological condition, which he hasn’t taken for 6 years because it costs him more than $10,000 each year. The $35 insulin copay caps for Medicare beneficiaries will be transformative for patients like Bob Parant, a type 1 diabetic from New York, who spoke to NPR about how the new provisionswill dramatically drop his out-of-pocket costs, making a “huge difference” in his life. Since Medicare beneficiaries are often exposed to high out-of-pocket costs that are tied to the list price of drugs, both the Medicare negotiation provision and the policy to curb price hikes will drive downcosts and bring relief. For years, hundreds of thousands of patients have fought for these reforms, and soon they will feel the fruits of their labor. (Time, New York Times,Pittsburgh Post-Gazette, NPR, Washington Post)
3. Senators Celebrate Drug Price Reforms
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)
4. Pharma: A Sore Loser
The tables have officially turned. For the first time in decades, “the seemingly unstoppable pharma lobbying force has lost its charm,” and it’s notthrilled. Big Pharma continued to spread lies about the drug legislation all the way up to its passage in the House, and experts continued to shut down the industry’s claims. “No, the Senate-Passed Reconciliation Bill Won’t Strip $300 Billion From Medicare,” headlined Kaiser Health News (KHN) and Politifact. “To the contrary,” writes Paul N. Van de Water of the Center on Budget and Policy Priorities. “The bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year.” Regarding PhRMA CEO Ubl’s falsities that the drug pricing scheme is based on “a litany of false promises,” P4ADNow’s Sarah Kaminer Bourland explains, “these reforms finally even the playing field and allow the federal government to come to the table and use its purchasing power.” And Richard Frank of the USC-Schaeffer Initiative debunks Ubl’s letter in an op-ed, saying, “one should not be swayed by a self-serving set of falsehoods, exaggerations, and muddled analyses in considering the advances offered by the act.” P4ADNow’s David Mitchell told KHN, “The idea that taking a small bite out of pharma revenue is going to stop them from creating new drugs is bullshit.” Sorry, Big Pharma, time to face the music: Your unlimited pricing power stops now. — (Fierce Pharma, Common Dreams, Kaiser Health News and Politifact, Common Dreams, The Hill, Kaiser Health News)
5. What’s Next?
While Democrats in Congress, patients, and advocates won a big victory against Big Pharma with the Inflation Reduction Act, the work to lower drug prices for all Americans continues on. With the establishment of brand new drug pricing programs such as Medicare negotiation, work to ensure strong implementation of the Inflation Reduction Act will be a key focus in the year to come. Efforts to extend the $35 insulin copay cap to all Americans were thwarted by Republicans in the Senate and the requirements of the reconciliation procedure limited the scope of price hike penalties. Now advocates and patients, including P4ADNow, will be turning to fight for new reforms to address high drug prices for all Americans, including families on private insurance like advocate Clayton McCook and his daughter Lily, and the uninsured, like patient Iesha Meza. The force behind the Inflation Reduction Act was the voice of patients and advocates, luckily they aren’t ready to stop anytime soon. — (CNBC, Axios, Washington Examiner, NBC News, Deseret News)
Have a great weekend, everyone!
WASHINGTON, D.C. — The following statement was issued by David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now, in response to the House of Representatives’ passage of the Inflation Reduction Act:
“Today marks a moment many Americans have been fighting for for decades; Congress stood up to Big Pharma and passed the historic drug price provisions in the Inflation Reduction Act that will lower prescription drug prices and out-of-pocket costs for millions of Americans. With this legislation, we have changed the trajectory of drug pricing policy in the United States. We have finally begun to break the power of multinational drug corporations to dictate prices of brand-name drugs to the American people.
“Thank you to the Democrats in Congress who have been fighting for these reforms for literally decades, and to Speaker Pelosi for her steely, determined leadership on the issue and swift passage of the legislation.
“For years, hundreds of thousands of patients across America have tirelessly advocated for these changes – they are the force behind these monumental reforms. There’s still more to be done to address other features of our system to ensure all Americans can afford their medications, and we will continue to push for the additional reforms needed. But for now, this legislation will rein in prices, lower out-of-pocket costs, and improve the lives of millions.
“We look forward to President Biden putting his signature on the Inflation Reduction Act and getting to work on implementation.”
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.
WASHINGTON, D.C. — The following statement was issued by David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now, following the Senate passage of the Inflation Reduction Act:
“The Senate made history today with passage of the Inflation Reduction Act, which will lower prescription drug prices, improve health, fight inflation, and help Americans keep money in their pockets. The provisions help ensure patients will get the innovative new drugs we need at prices we can afford.
“This legislation – decades in the making – will, for the first time, authorize Medicare to negotiate prices directly for some of the costliest prescription medicines; institute a cap on out-of-pocket drug costs for Medicare beneficiaries; and limit annual price increases in Medicare to stop price gouging by drug corporations. CBO estimates savings of almost $300 billion to the federal government alone.
“Make no mistake, this legislation is game changing. It alters the trajectory of drug pricing and policy in the United States. It finally begins to break the power of multinational drug corporations to dictate prices of brand name drugs to the American people. It marks a shift to reforming the system in order to make it work for the people it is supposed to serve – rather than the people who profit from it.
“The victory in the Senate today would not have been achieved without tireless advocacy from hundreds of thousands of patients, their families, and allies. Their dedication to sharing their real, lived experiences made it possible to reach policymakers in Washington and counter the power of the drug companies; they are the force behind these reforms.
“We thank the 50 Democratic Senators who stood with patients to achieve this hard won victory. In the face of lies, scaremongering, and assaults by the drug corporations, they delivered for the American people who overwhelmingly support the legislation. We are grateful for the savvy work of Senate Majority Leader Chuck Schumer to achieve this goal so long sought. Onward to the House where we look forward to passage of the legislation when it convenes in the coming days.”
August 5, 2022
Dear Member of Congress,
Yesterday the pharmaceutical industry and its lobbyists — PhRMA — displayed their true colors yet again in a letter purporting to speak for the interests of patients. They do not, and this letter aims to set the record straight.
I am a cancer patient and the founder of Patients For Affordable Drugs Now — the only national patient organization focused exclusively on policies to help patients by lowering drug prices. We are independent, bipartisan, and we don’t accept funding from any organizations that profit from the development or distribution of prescription drugs. In just over five years of existence, our community has grown from zero to more than a half-million patients, family members, and allies.
In direct contrast to PhRMA, we are proud to be able to advocate on behalf of more than 3 in 4 Americans — Democrats, Republicans and independents — who support passage of the drug pricing provisions in the Inflation Reduction Act. The drug companies ignore the will of the American people and characterize the legislation as “hyperpartisan.” But, in a nation sharply divided on so many issues, this legislation enjoys overwhelming, omni-partisan support. Voters want you to pass this bill.
Americans are desperate for reform because this affects so many of us — it is a lived experience. Fifty-one percent of cancer patients report going into debt because of the price of their care, with chemotherapy and pharmacy drugs cited among the top reasons for that debt. “Financial toxicity” is a well-studied and common side effect of being a cancer patient.
The drug price reforms in the Inflation Reduction Act help patients have access to the drugs they need now and ensure the future drug innovation we need at prices we can afford. Time and again, PhRMA has tried to scare patients with threats that people will literally die because lower prices — even just slightly lower prices — will decimate innovation. But the Congressional Budget Office says the legislation will result in just 15 fewer new drugs out of 1,300 over the next 30 years. In its letter, PhRMA attempts to refute the CBO findings with an issue brief that is not peer-reviewed, and the funding for which, along with author conflicts, are not disclosed.
PhRMA threatens that this legislation will cripple the President’s Cancer Moonshot. But there is a reason we need ARPA-H to get the speed we are seeking in the quest for new cancer treatments and cures: PhRMA won’t invest in risky research on its own — taxpayers must underwrite and lay the groundwork for the industry so it can garner high profits with low risk. Every one of the 356 new drugs approved by the FDA from 2010-2019 was based in some part on research paid for by taxpayers through the National Institutes of Health.
For me this is personal. As a patient with incurable cancer, I need innovative new drugs, or I am going to die sooner than I hope. But drugs don’t work if people can’t afford them. That’s why the Inflation Reduction Act is so important to patients like me — it restores balance to give us the innovation we need at prices we can afford.
PhRMA claims that drugs will not be available in the U.S. if we lower prices. That is just a red herring. Simply put, PhRMA prioritizes the United States to sell its drugs because we are the largest market in the world with the highest prices in the world. And after enactment of the Inflation Reduction Act, the U.S. will still be the largest market in the world with the highest prices in the world. It is silly to suggest that drug companies will not want to mine the vein of gold that is the U.S. pharmaceutical market.
But the statement that truly reveals PhRMA’s world view came not in the letter but in an interview with Politico about the letter. CEO Steve Ubl said, “Those members who vote for this bill will not get a free pass. We’ll do whatever we can to hold them accountable.” In other words, PhRMA believes members of Congress should ignore the will of the people — ignore the voters who elected them — and vote to maintain the industry’s power to dictate high prices to the American people. PhRMA places its profit ahead of the needs and wishes of the citizens of this country. And that says it all.
We want to be clear about this threat by PhRMA against members of Congress with the courage to stand up to the industry: You have the will of the people behind you. We will be there to make clear that when it came time to choose, you chose to stand with patients and the American people over multinational drug company bullies.
On behalf of patients and the vast majority of the American people, stand with us and vote yes on the Inflation Reduction Act to lower drug prices.
Sincerely,
David Mitchell
Cancer patient and founder of Patients For Affordable Drugs Now
