The Week in Review in Prescription Drug Pricing

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)

3. It’s a Good Plan, Brent

• 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.
• Digital tools that allowed Commonwealth residents to contact legislators via letters, Facebook, and Twitter in support of the measures.
• Blogs that elevated the voices of local patients 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?

1. Trust No One

• Nobody trusts Big Pharma. — (Morning Consult)

2. Oh, Canada ??

• We want patients to buy prescriptions at reasonable prices, but we can’t rely on our northern neighbor forever. — (Reuters)

3. All a Blur

• Tracking drug pricing proposals makes our heads spin on the weekly. Here’s a handy guide. — (STAT)

4. “My love for you is like drug list prices: inexplicable.”

• Totally inexplicable. — (NPR)

5. Weekend Read

• 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.

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Ugh, drug pricing. Water we going to do about it? We’re floating some ideas.
 
1. Don’t Sell Out Sickle Cell Patients

• Taxpayers invested hundreds of millions of dollars into a cure for sickle cell disease. Now a drug company could make billions from the drug. — (FierceHealthcare)

2. Program Canceled ?

• Americans wanted to list drug price ads on TV. Big Pharma and a federal judge said no. — (The New York Times)

3. Tea Leaves

• Could a closed-door meeting with Trump aides and GOP senators hint at a path forward to slow the roll of Part D price hikes? — (The Hill)

4. Negotiation. The American Way!

• The president said the U.S. should pay what other nations pay for drugs. Now the focus turns to the administration’s International Pricing Index.— (STAT & Yahoo Finance)

5. California is Not Dreamin’

• AB824, legislation that would end shady, collusive pay-for-delay deals, is movin’ in real life. — (Twitter)