STATEMENT: President’s Speech Calls On Congress To Allow Medicare To Negotiate Lower Drug Prices And Lays Out Important Proposals

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’s speech on how his Build Back Better agenda will lower prescription drug prices: 

“President Biden’s speech today adds powerful momentum for reforms to lower prescription drug prices and for direct Medicare negotiation specifically. He couldn’t have said it more clearly: ‘These prices put the squeeze on too many families and strip them of their dignity … Medicare is going to negotiate a fair price!’ His conversation with patient advocate Gail deVore demonstrated once again that this president understands and will use the power of his office to achieve reforms we need and 90 percent of Americans support.

“The president also offered important details on his approach that we support, including focusing on a subset of expensive drugs, creating a framework for what constitutes a fair price to guide negotiators, powerful incentives to ensure companies agree to a reasonable price, penalties for raising prices faster than inflation, making lower negotiated prices available in the private sector, and capping out-of-pocket costs for patients. These comprise a strong, comprehensive set of policies to help all Americans.

“Today, I am more optimistic than ever that we are going to get this done.”

Background:

• This speech comes on the heels of the Senate’s vote to move forward with drafting a legislative package to deliver on the president’s Build Back Better plan, which includes lowering drug prices through Medicare negotiation.President Biden‘s Build Back Better plan builds on his campaign promise to lower prices by allowing Medicare to negotiate. 
• Since then, the president has doubled down on his commitment, and he strongly reaffirmed his support for lower drug prices through Medicare negotiation.
• The Senate Finance Committee is reportedly drafting a bill that would allow Medicare to negotiate that is likely to be included in the Senate’s final reconciliation package. Senate Finance Committee Chairman Wyden recently released his guiding principles for drug pricing reform, which are expected to be included in the bill. Chairman Wyden said, “We are moving aggressively to put together a prescription drug package that protects those millions of Americans who believe they’re getting mugged at the pharmacy.”
• The Wall Street Journal reported, “Senate Budget Committee Chairman Bernie Sanders has said he hopes to include provisions allowing the federal government to negotiate prices for certain costly drugs in Medicare.”
• House leadership has been clear they plan to include Medicare negotiation in the reconciliation package.In a press call, Speaker Pelosi said she wants to include Medicare negotiation in the budget bill. “We have an extraordinary opportunity to do this as we craft this reconciliation bill,” she told reporters.
• In May, 156 House Democrats — 70 percent of the House Democratic caucus — signed a letter urging the Biden administration to include Medicare negotiation to lower drug prices in the American Families Plan. 
• In June, 15 vulnerable House Democrats sent a letter asking congressional leadership to include Medicare negotiation in the budget bill. 
• In the House of Representatives, H.R. 3, which would allow Medicare to negotiate lower drug prices on behalf of all Americans, was reintroduced in April. If passed, H.R. 3 would save nearly half a trillion dollars for taxpayers by restoring balance to our drug pricing system and curbing pharma’s unilateral pricing power.

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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 Senate Judiciary Committee’s bipartisan, unanimous passage of a package of four bills that would lower drug prices and promote innovation by curbing anticompetitive behavior by pharmaceutical corporations: 

“We applaud Chairman Durbin, Ranking Member Grassley, and members of the Senate Judiciary Committee for passing legislation to crack down on anticompetitive drug industry practices and strengthen incentives for true biomedical innovation. This package of bills takes important steps to address abuses of our patent system that inhibit innovation, block competition, and allow drug corporations to raise prices without restraint. 

“Today’s unanimous vote also lends important momentum to the larger work in Congress to fix our broken drug pricing system. We will continue to work with Congress this year to enact other needed reforms, including allowing Medicare to negotiate lower drug prices for all Americans.”

Background:

• The Senate Judiciary Committee markup took place this morning. Watch the video recording here. The package of bills will next move to the full Senate for a vote. 
• The legislative package includes the following bills: 
  • S. 1435, Affordable Prescriptions for Patients Act of 2021, would amend the Federal Trade Commission Act to define product hopping as anticompetitive and facilitate biosimilar market entry by disincentivizing patent thicketing behavior by biologic drug makers.
  • S. 1425, Stop STALLING Act, would eliminate drug company abuse of the Food and Drug Administration’s citizen petition program by deeming submission of sham petitions as anticompetitive under the FTC Act and giving the FTC authority to penalize companies engaged in this behavior.
  • S. 1428, Preserve Access to Affordable Generics and Biosimilars Act, would crack down on collusive pay-for-delay settlements by making them presumptively anticompetitive, a reform that would stop brand-name companies from artificially lengthening monopoly periods in an effort to keep more affordable alternatives away from consumers.
  • S. 1388, Prescription Pricing for the People Act of 2021, would require the FTC to examine the effects of consolidation on pricing and other potentially abusive behavior within the pharmacy benefit manager industry.

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NEW JERSEY — Nearly 40 labor, business, consumer, and health care organizations sent a letter this week calling on Congress to pass legislation to allow Medicare to negotiate lower drug prices. The letter praises H.R. 3, the House bill that would allow Medicare to negotiate drug prices, as well as Senate Finance Committee Chairman Ron Wyden’s recent guiding principles for drug pricing reform, which are expected to be considered for inclusion in the Democrats’ reconciliation budget package later this year.

“We hope, as a member of the Senate Finance Committee, Senator Menendez recognizes that major labor, business, consumer, and health care groups in this nation all agree that Medicare must have the ability to negotiate lower drug prices for Americans,” said David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now. “Nine out of 10 Americans support this policy. We are calling on Senator Menendez to stand with patients against Big Pharma’s lobbying machine.” 

Big Pharma has been spreading lies to try to stop drug pricing reform from moving forward — the pharmaceuticals and health products industry spentabout $92 million on lobbying in the first quarter of the year, more than any other industry.

The letter, addressed to Senate Majority Leader Chuck Schumer, Speaker Nancy Pelosi, Senate Minority Leader Mitch McConnell, and House Minority Leader Kevin McCarthy, asks them to:  

• Authorize Medicare to negotiate drug prices, especially for high-cost drugs, and allow the Department of Health and Human Services to do so on behalf of all payers. 
  • The letter calls for negotiated prices to consider key components including: research and development costs, including prior federal support; data on net prices, sales across all markets, and projected revenue; costs of production and distribution; and data on comparative effectiveness.
• Cap price increases on existing drugs to the rate of inflation for all Medicare and private plans.
• Redesign Part D to lower prices and costs for beneficiaries and taxpayers. That includes a reduction in out-of-pocket costs and overall costs, including holding the line on insurance premiums for consumers, regardless of coverage type or insurance status. 

“This year provides the best opportunity in decades to pass legislation to allow Medicare to negotiate lower drug prices and bring meaningful relief to millions of Americans who struggle to afford their prescription drugs,” Mitchell continued. “As President Biden said, ‘Let’s do it now.’”

Patients For Affordable Drugs Now is one of nearly 40 organizations that signed onto the letter, which was led by Families USA. In an effort to pass legislation to allow Medicare to negotiate, P4ADNow recently launched a campaign calling on Senator Menendez to support policy reform that would bring relief to New Jerseyans.

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CALIFORNIA — Nearly 40 labor, business, consumer, and health care organizations sent a letter this week calling on Congress to pass legislation to allow Medicare to negotiate lower drug prices. The letter praises H.R. 3, the House bill that would allow Medicare to negotiate drug prices, as well as Senate Finance Committee Chairman Ron Wyden’s recent guiding principles for drug pricing reform, which are expected to be considered for inclusion in the Democrats’ reconciliation budget package later this year.

“We hope Rep. Peters recognizes that major labor, business, consumer, and health care groups in this nation all agree that Medicare must have the ability to negotiate lower drug prices for Americans,” said David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now. “Nine out of 10Americans support this policy. We are calling on Rep. Peters to stand with patients against Big Pharma’s lobbying machine.” 

Rep. Peters refuses to support H.R. 3, a bill that would allow Medicare to negotiate lower drug prices. He touted his support for the bill in 2019 but more recently came out in opposition, threatening to derail his party’s budget bill if it includes the legislation. 

Big Pharma has been spreading lies to try to stop drug pricing reform from moving forward — the pharmaceuticals and health products industry spentabout $92 million on lobbying in the first quarter of the year, more than any other industry.

The letter, addressed to Senate Majority Leader Chuck Schumer, Speaker Nancy Pelosi, Senate Minority Leader Mitch McConnell, and House Minority Leader Kevin McCarthy, asks them to:  

• Authorize Medicare to negotiate drug prices, especially for high-cost drugs, and allow the Department of Health and Human Services to do so on behalf of all payers. 
  • The letter calls for negotiated prices to consider key components including: research and development costs, including prior federal support; data on net prices, sales across all markets, and projected revenue; costs of production and distribution; and data on comparative effectiveness.
• Cap price increases on existing drugs to the rate of inflation for all Medicare and private plans.
• Redesign Part D to lower prices and costs for beneficiaries and taxpayers. That includes a reduction in out-of-pocket costs and overall costs, including holding the line on insurance premiums for consumers, regardless of coverage type or insurance status. 

“This year provides the best opportunity in decades to pass legislation to allow Medicare to negotiate lower drug prices and bring meaningful relief to millions of Americans who struggle to afford their prescription drugs,” Mitchell continued. “As President Biden said, ‘Let’s do it now.’”

Patients For Affordable Drugs Now is one of nearly 40 organizations that signed onto the letter, which was led by Families USA. In an effort to pass legislation to allow Medicare to negotiate, P4ADNow recently launched a campaign calling on Rep. Peters to support policy reform that would bring relief to Californians.

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DELAWARE — Nearly 40 labor, business, consumer, and health care organizations sent a letter this week calling on Congress to pass legislation to allow Medicare to negotiate lower drug prices. The letter praises H.R. 3, the House bill that would allow Medicare to negotiate drug prices, as well as Senate Finance Committee Chairman Ron Wyden’s recent guiding principles for drug pricing reform, which are expected to be considered for inclusion in the Democrats’ reconciliation budget package later this year.

“We hope, as a member of the Senate Finance Committee, Senator Carper recognizes that major labor, business, consumer, and health care groups in this nation all agree that Medicare must have the ability to negotiate lower drug prices for Americans,” said David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now. “Nine out of 10 Americans support this policy. We are calling on Senator Carper to stand with patients against Big Pharma’s lobbying machine.” 

Big Pharma has been spreading lies to try to stop drug pricing reform from moving forward — the pharmaceuticals and health products industry spentabout $92 million on lobbying in the first quarter of the year, more than any other industry.

The letter, addressed to Senate Majority Leader Chuck Schumer, Speaker Nancy Pelosi, Senate Minority Leader Mitch McConnell, and House Minority Leader Kevin McCarthy, asks them to:  

• Authorize Medicare to negotiate drug prices, especially for high-cost drugs, and allow the Department of Health and Human Services to do so on behalf of all payers. 
  • The letter calls for negotiated prices to consider key components including: research and development costs, including prior federal support; data on net prices, sales across all markets, and projected revenue; costs of production and distribution; and data on comparative effectiveness.
• Cap price increases on existing drugs to the rate of inflation for all Medicare and private plans.
• Redesign Part D to lower prices and costs for beneficiaries and taxpayers. That includes a reduction in out-of-pocket costs and overall costs, including holding the line on insurance premiums for consumers, regardless of coverage type or insurance status. 

“This year provides the best opportunity in decades to pass legislation to allow Medicare to negotiate lower drug prices and bring meaningful relief to millions of Americans who struggle to afford their prescription drugs,” Mitchell continued. “As President Biden said, ‘Let’s do it now.’”

Patients For Affordable Drugs Now is one of nearly 40 organizations that signed onto the letter, which was led by Families USA. In an effort to pass legislation to allow Medicare to negotiate, P4ADNow recently launched a campaign calling on Senator Carper to support policy reform that would bring relief to Delawareans.

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OREGON — Nearly 40 labor, business, consumer, and health care organizations sent a letter this week calling on Congress to pass legislation to allow Medicare to negotiate lower drug prices. The letter praises H.R. 3, the House bill that would allow Medicare to negotiate drug prices, as well as Senate Finance Committee Chairman Ron Wyden’s recent guiding principles for drug pricing reform, which are expected to be considered for inclusion in the Democrats’ reconciliation budget package later this year.

“We hope Rep. Schrader recognizes that major labor, business, consumer, and health care groups in this nation all agree that Medicare must have the ability to negotiate lower drug prices for Americans,” said David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now. “Nine out of 10Americans support this policy. We are calling on Rep. Schrader to stand with patients against Big Pharma’s lobbying machine.” 

Rep. Schrader has refused to support H.R. 3, a bill that would allow Medicare to negotiate lower drug prices, in this Congress. He originally said he was proud of his vote in support of H.R. 3 in 2019, but since then has raised concerns about the legislation, even suggesting Congress take a less “robust”approach to drug pricing reform, contrary to the wishes of 90 percent of Americans. 

Big Pharma has been spreading lies to try to stop drug pricing reform from moving forward — the pharmaceuticals and health products industry spentabout $92 million on lobbying in the first quarter of the year, more than any other industry.

The letter, addressed to Senate Majority Leader Chuck Schumer, Speaker Nancy Pelosi, Senate Minority Leader Mitch McConnell, and House Minority Leader Kevin McCarthy, asks them to:  

• Authorize Medicare to negotiate drug prices, especially for high-cost drugs, and allow the Department of Health and Human Services to do so on behalf of all payers. 
  • The letter calls for negotiated prices to consider key components including: research and development costs, including prior federal support; data on net prices, sales across all markets, and projected revenue; costs of production and distribution; and data on comparative effectiveness.
• Cap price increases on existing drugs to the rate of inflation for all Medicare and private plans.
• Redesign Part D to lower prices and costs for beneficiaries and taxpayers. That includes a reduction in out-of-pocket costs and overall costs, including holding the line on insurance premiums for consumers, regardless of coverage type or insurance status. 

“This year provides the best opportunity in decades to pass legislation to allow Medicare to negotiate lower drug prices and bring meaningful relief to millions of Americans who struggle to afford their prescription drugs,” Mitchell continued. “As President Biden said, ‘Let’s do it now.’”

Patients For Affordable Drugs Now is one of nearly 40 organizations that signed onto the letter, which was led by Families USA. In an effort to pass legislation to allow Medicare to negotiate, P4ADNow recently launched a campaign calling on Rep. Schrader to support policy reform that would bring relief to Oregonians.

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MASSACHUSETTS — Patient advocate Karolina Chorvath, who lives with Crohn’s disease, shared her story about living with high drug prices today during a Joint Committee on Health Care Financing hearing, testifying in support of House Bill 729 and Senate Bill 771. This legislation expands the authority of the Health Policy Commission to allow it to review the prices of expensive drugs and engage with drug corporations to lower the costs of medications that are deemed unreasonable or excessive. 

To manage her Crohn’s disease and arthritis, Chorvath takes Stelara, which costs between $30,000 and $70,000 a year. She also takes an injectable for severe chronic migraines that costs $300 to $600 per treatment. 

“Like so many others, I live at the mercy of drug corporations,” Chorvath, a Boston-based journalist, told the committee. “I already have to deal with the excruciating pain and uncertainty of living with multiple chronic conditions … It is unacceptable to leave any patient wondering if they can afford to live.” 

H.729, An Act to ensure prescription drug cost transparency and affordability, and S.771, An Act relative to pharmaceutical access, costs, and transparency, would: 

• Authorize the Health Policy Commission to review the costs for the most expensive drugs and drugs that have had rapid price increases;
• Engage drug manufacturers in lowering costs if their prices are deemed unreasonable or excessive;
• Implement cost assistance programs to lower the costs of several medications, including inhalers and insulin;
• Improve price transparency to better understand what is driving high prices;
• Increase oversight of pharmacy benefit managers through state licensure.

“That is why reforms like those proposed are so important,” Chorvath said. “They take on the high cost of prescription drugs and would bring some relief to patients like me.”

After today’s hearing, the committee will consider whether to report out the bills favorably.

You can watch the recording of the hearing here.

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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’s July 9 Executive Order on Promoting Competition in the American Economy:

“We applaud President Biden for promoting competition to drive true innovation and lower prescription drug prices for Americans. This executive order is another demonstration of the administration’s commitment to providing relief to patients struggling to afford their prescription medications. We look forward to working with HHS and the FTC as they craft their plans to fulfill the requests in the order.
 
“The president’s executive order included a restatement of his call for comprehensive legislation, including allowing Medicare to negotiate lower drug prices. Both avenues — executive action and legislative solutions — can contribute to the reforms we need to ensure we get the innovation we need at prices patients can afford.”

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