California’s Groundbreaking Drug Pricing Effort Gains Steam
SACRAMENTO, Calif. — A groundbreaking bill to lower prescription drug prices will move to the full Assembly floor. Assembly Bill 824 would stop Big Pharma from cutting deals that block less-expensive generic drugs for state residents — a tactic that limits patient choice and costs taxpayers billions each year.
Target a practice called “pay-for-delay,” in which brand drug corporations pay generic drug makers to delay the marketing and release of cheaper generic prescription drugs.
Make “pay-for-delay” deals illegal and provide the California Department of Justice a path to more easily investigate them.
Place the burden of proof on drug companies to prove to the California Attorney General’s Office that deals aren’t anticompetitive.
“California residents have been speaking out in support of the state’s effort to stop Big Pharma from cutting anti-competitive deals that keep drug prices high,” said Juliana Keeping, Communications Director for Patients For Affordable Drugs Now. “Thanks to a dirty tactic called ‘pay-for-delay,’ drug corporations are allowed to pay off generic competitors in an effort to maintain their monopoly and increase prices for patients. California patients have had enough and are sending a simple message: Drugs don’t work if people can’t afford them.”
Here’s what California patients speaking out about the need to lower drug prices have to say:
Dorothy Nerli, Willows, CA: “I find I am faced with increased costs, like the time my Spiriva went up to $129. Spiriva helps to clear my airways, clearing out my lungs in order to make my breathing easier. I have scar tissue in my lungs due to several bouts of pneumonia. This is a horrible case of greed on the part of the manufacturers, who should lower the price of these medications. It shouldn’t cost seniors their rent or a healthy diet in order to be able to breathe.”
Elizabeth Reinboldi, Vacaville, CA: “If I weren’t able to get my medication, it would be a great detriment to my quality of life. I love to be involved with my church and volunteer as much as possible. I wouldn’t be able to do these things if I couldn’t get my medicine, or if the price goes up at all. I simply wouldn’t be able to walk due to the pain. We need lower drug prices as soon as possible.”
Sharon Fisher, Rio Vista, CA: “Because of the high price, my doctor put me on a cheaper drug: Tramadol. It does not work as well as the Lidocaine. I don’t get to do any of the activities that I used to love. I miss going to the gym and leading an active lifestyle, but my pain is simply too severe. Too many seniors have to go without medicine due to high out of pocket costs. Something needs to change –– and soon.”
Patients For Affordable Drugs Now is a Washington, DC-based patient advocacy organization that takes no money from the pharmaceutical industry or any other player in health care. As part of its ongoing campaign in support of the California legislation, Patients For Affordable Drugs Now:
Launched a 5-figure campaign to advance the bill
Gave Californians digital tools to write hundreds of letters in support of AB 824
###
Former CMS Administrator Andy Slavitt summed up the insulin crisis in eight numbers:
3 6 21 39 275 4,000 – 6,000 30 million
Read it all here, and welcome to the Week in Review in prescription drug pricing!
1. The Price is Not Right
A coalition of attorneys general from more than 40 states is suing generic drug makers for price collusion in one of the biggest alleged industry-wide price fixing schemes in U.S history. — (CBS 60 Minutes)
2. #GlaxoSmithLies
GlaxoSmithKline has relied on a handful of abusive tactics to keep profit margins high while raising prices. In return, patients with asthma who need blockbusters like Advair are in dire straits. — (Patients For Affordable Drugs)
3. You Get a Yacht!
Health care CEOs made $2.6 billion last year. The highest salary went to a pharma executive. — (Axios)
4. All the Excuses
Research and development is often the go-to defense when pharma is questioned on mile-high prices, but a new study says it is nothing but spin. — (The Fiscal Times)
5. It Has to End
We need legislation to stop deals for delay and patent thickets, AbbVie’s monopolistic bread and butter. — (STAT)
This week the world welcomed a royal baby! However, unless your name is Archie Harrison Mountbatten-Windsor, you’ll probably still have to worry about the high cost of prescription drugs.
Welcome to the week in review in prescription drug pricing!
1. “It’ll be a big fight”
Novartis is gearing up to release a gene therapy that could save children living with the most severe type of Spinal Muscular Atrophy. But at $2 million for a course of therapy, parents aren’t sure their children will ever receive it. — (The Wall Street Journal)
2. Sky high in July
A finalized rule from HHS will require that drug companies include the list price of drugs in ads. It goes into effect July 9. — (TIME)
3.Reference this
A groundbreaking study from Johns Hopkins University shows how International Reference Pricing could save the government and patients BILLIONS! — (Health Affairs)
4.Patently absurd
Tuesday’s Senate Judiciary hearing on drug company patent abuses included P4AD’s very own David Mitchell, who discussed the human impact of Big Pharma’s abusive patent games. — (Kaiser Health News)
5.Robber barons would blush
Senators John Cornyn, a Texas Republican, and Richard Blumenthal, a Connecticut Democrat, proposed legislation this week to stop drug companies’ abusive patent tactics that block competition and crush taxpayers and patients. — (Bloomberg)
We would be remiss if we did not note the passing of one of the deans of health journalism, The New York Times’ Robert Pear. We will miss his kind spirit, tenacious reporting, and brilliant mind.
Robert, Thank You.
We hope you all have a chance to see Endgame this weekend. Our Endgame? Lower drug prices.
Welcome to the week in review in prescription drug pricing!
1. Fake patient advocacy on the rise
The pharmaceutical industry is secretly funneling cash into sham non-profit organizations under the guise of helping patients. Look inside this murky world. — (Bloomberg)
2. Woman v. The Machine
In Maine, “The lone voice of a woman from Limestone lays bare the travesty of high drug prices.” — (The Press Herald)
3. The Everglades
In the first three months of 2019, PhRMA spent $10 million for 27 in-house lobbyists and 20 outside lobbyists. Swampy. — (STAT & Bloomberg)
4. Good luck with that
PhRMA has launched a campaign to defend high drug prices at the ballot box. Another day, another deception. Scroll through Twitter users’ fiery reactions. — (Twitter reactions to @PhRMA)
5. America, meet the drug pricing vernacular
Terms like “pay-for-delay” go mainstream as presidential contenders lift the veil on Big Pharma’s secretive dealings. — (Kaiser Health News)
###
Welcome to the week in drug pricing news — no redactions.
1. Big Pharma: “We are going to put prices on our websites*”
*In the least clear way possible, and also, in pastels. — (STAT)
2. The Big Pharma tax windfall goes to…
Investors! Not lowering drug prices. — (FiercePharma)
3. Main-ahs look into wicked high prices
A packet of bills would give Maine options to lower drug prices for patients. Four of those Mainers testified this week in favor of reforms. — (Maine Public)
4. Constituent: “Hi, I’m not calling about the Mueller report.”
Freshman Congresswoman Lauren Underwood (D, IL-14) is a former nurse who wants to use her health care expertise to lower drug prices. New GOPers like Josh Hawley (R-MO) are interested in lowering drug costs, too. — (The Daily Herald & Axios)
5. Let’s make a deal.
In his first 100 days in office, California Governor Gavin Newsom is making waves by outlining a plan to negotiate with drug corporations for lower prices. — (The San Francisco Chronicle)
We finally know what a black hole looks like. Next black hole to face the cameras: justification for drug company price hikes.
1. Patients win
There were two drug lobbyists for every Maryland state senator this session — and patients still won. A first-in-the-nation prescription drug affordability board with the authority to evaluate high-cost prescription drugs and set reasonable rates now awaits the governor’s signature. — (STAT)
2. Counts for nothing
In its latest bid to deflect mounting criticism of price gouging, drug giant Sanofi cut insulin prices only for the uninsured and patients paying cash hours before a Congressional hearing on rising insulin prices. Give them no credit. — (CBS)
3. Do you like apples?
Patient voices took center stage during testimony at a Massachusetts Statehouse hearing for sweeping drug pricing reforms in the commonwealth. How do you like them apples? — (Mass Live)
4. What a week in Washington
Over the last week, Washington took meaningful steps on legislation that would curb drug company price gouging, end abuse of citizen petitions, stop drug companies from abusing the patent system, demand more transparency from pharmacy benefit managers, and protect people who are insulin dependent.— (KTXS)
5. Walmart-ism
Walmart insulin has been pitched by drug executives as a solution for patients struggling to afford insulin. Find out why it’s not the answer. — (Vox)
We won’t spoil Game of Thrones, but we will spoil Big Pharma’s ongoing attempt to rob us all.
Welcome to the Week in Review in Prescription Drug Pricing!
1. Drowning in debt
A recent survey revealed the stunning amount of debt Americans are facing as a result of rising health care and prescription drug costs. — (NYT)
2. Pharma on the run
The House Energy and Commerce Committee passed two bills to close loopholes used by drug companies to keep prices high. — (AARP)
3. Call us
Scott Gottlieb’s last day of work as the FDA commish was Friday. He is going to Disney World before tackling drug prices in his next role at a conservative think tank. — (Washington Post)
4. Influence peddling in the commonwealth
As Massachusetts prepares to review a package of bills aimed at reducing drug costs, a river of Big Pharma money flows to maintain the status quo. — (FiercePharma)
If Alanis Morissette released her iconic album today, would it be called Jagged Little Overpriced Pill?
Welcome to the Week in Review in Prescription Drug Pricing.
1. Fear the Turtle
Maryland could be the first state in the nation to set up a Prescription Drug Affordability Board, an independent body with the authority to evaluate high-cost prescription drugs and set rates for state and local governments to pay. With a push from patients, the bill passed the House of Delegates 98-40. On to the Senate! — (The Baltimore Sun)
2. Taxpayers pay twice
Americans spent millions to invent a new use for an HIV drug. Gilead got the rights and is making billions on research *we* paid for. Somebody write a law to fix that. — (The Washington Post)
3. Highway Robbery
The Kentucky AG launched an inquiry into pharmacy benefit managers that are almost certainly overcharging state taxpayers for prescription drugs. Kentucky joins Arkansas, Ohio, Connecticut, West Virginia, and Pennsylvania, states that have launched investigations, issued scathing reports, or passed an array of reforms aimed at this shadowy drug pricing player. — (Courier Journal)
4. Sticker shock won’t lower drug prices
Johnson & Johnson decided to put prices in its (tax free) TV ads. It can’t hurt and may stoke public outrage, but these companies are immune to shame. We need transparency, and to lower list prices. — (NYT)
5. Does not compute
Pharma’s main talking point — that the industry needs extreme prices to fund new drugs — is the con of the century. Here’s why. — (The Atlantic)
