Latest News | Mar 15, 2022

What To Watch For At Tomorrow’s Senate Finance Hearing On The Urgent Need To Lower Rx Prices

Big Pharma And Its Allies Will Spread Lies To Oppose Reforms — Here’s What To Look Out For

WASHINGTON, D.C. — The Senate Committee on Finance will hold a hearing tomorrow at 10:00 AM ET on the need to pass comprehensive drug pricing reforms, including Medicare negotiation. The hearing, “Prescription Drug Price Inflation: An Urgent Need to Lower Drug Prices in Medicare,” takes place as the Senate considers the drug pricing reforms already passed by the House of Representatives. Opponents of these reforms are expected to shepherd Big Pharma’s talking points with false claims about innovation, access, and Big Pharma’s investment in COVID-19 vaccines. Here’s a roundup of what to look out for, how these reforms will help patients, and the momentum to get it done: 

Big Pharma Fear-Mongering

  1. Innovation Lies: Big Pharma claims that Medicare negotiation will stifle innovation, lead to fewer drugs coming to market, and devastate pharma revenue, jeopardizing jobs and R&D investment.
    • The Truth: The impact on innovation under the BBB provisions would be negligible to non-existent. The CBO score of the BBB provisions found that Americans would forgo just 10 out of 1,300 drugs over the next 30 years — and there’s no indication that any of the drugs lost would be innovative cures, as only 1 in 8 new drugs generates a new therapeutic benefit. The pharmaceutical industry is in no danger of being in financial jeopardy. Large, brand-name drug corporations could lose $1 trillion in sales over a decade and still be the most profitable industry in the United States. 
  2. Access Lies: Big Pharma claims that reforms would reduce access to life-saving drugs and put Washington bureaucrats in between patients and their medications.
    • The Truth: The biggest barrier to patient access is high prices. Right now, 1 in 3 adults do not take their medication as prescribed due to cost, and it is the most common reason given for not filling a prescription. The drug price reforms being considered by the Senate will increase access to drugs and save lives by reducing prices. Right now, pharma CEOs are the ones standing in between patients and their drugs because they are responsible for the high prices that keep medications out of reach.
  3. COVID-19 Lies: Big Pharma claims that reforms would devastate the profits of an industry that just saved us from COVID-19.
    • The Truth: Taxpayers laid the scientific foundation for our most effective COVID-19 vaccines. Drug companies only got involved after the promise of a handsome, risk-free profit. Since the beginning of the pandemic, over $18 billion in public funds has been invested into vaccine candidates, mitigating the financial risk and accelerating development. Pfizer and Moderna are expected to rake in $51 billion from their COVID-19 vaccines in 2022 following record-breaking revenue from Pfizer’s vaccine in 2021. COVID-19 vaccine sales have created nine new billionaires.

How Drug Pricing Reforms Will Help Patients 
The drug price provisions under consideration will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines; institute a hard cap on out-of-pocket drug costs for Medicare beneficiaries and limit copays on insulin for millions of Americans to $35 each month; and limit annual price increases to stop price gouging by drug corporations. 

If the drug pricing crisis goes unaddressed, millions of patients will be denied access to prescriptions they need to survive, and the drug industry will be left with unilateral power to dictate prices for brand-name drugs — something no other nation in the world allows. Without action, we are effectively mandating that American patients continue to pay almost four times what patients in other countries pay for the same brand-name drugs. Acting on reforms is a health equity imperative — non-white patients are disproportionately harmed by rising drug prices.

Momentum To Get It Done
The momentum is here – in his State of the Union address, President Biden called for lowering drug prices as a key part of his plan to lower costs for Americans, and Senator Manchin followed the president’s call by saying he is ready to come to the table and pass drug pricing reforms in a reconciliation bill. The full Democratic caucus has endorsed the deal to lower drug prices. Key members continue to emphasize that lowering drug prices will address high and rising costs and are encouraging the caucus to move forward with the comprehensive drug price provisions, including Medicare negotiation

Rising prices are understandably a top concern for American families. Addressing drug prices will put more money back in the pockets of patients and their loved ones by helping curb inflation. Additionally, lowering drug prices is a top midterm issue for more than 90 percent of voters. If Congress fails to pass reforms, 3 out of 4 voters say it will impact their vote in November. 

The Senate Finance Committee hearing on drug pricing will include witnesses Rena M. Conti, Ph.D., Douglas Holtz-Eakin, Ph.D., Stephen Ezell, and Steffany Stern, M.P.P. Watch tomorrow at 10:00 AM ET here

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Groups Representing Patients, Consumers, Seniors, Unions, Small Businesses, Large Employers, And Physicians And Disease Advocacy Groups Align On Rx Reforms In BBB Act 

WASHINGTON, D.C. — As the Senate considers the terms of a reconfigured reconciliation package, 91 organizations representing patients, consumers, seniors, unions, small businesses, large employers, and physicians and disease advocacy groups sent a letter to all 50 Senate Democrats urging them to take immediate action to advance a reconciliation package that includes the reforms to lower prescription drug prices in the Build Back Better Act. 

“These drug pricing reforms are not controversial for the people of America; they are the most popular element of BBB. Over 80 percent of Americans support them — Democrats, Republicans, and independents alike,” said David Mitchell, a patient with incurable blood cancer whose drugs carry a list price of more than $900,000 per year and founder of Patients For Affordable Drugs Now. “The provisions before the Senate will help restore balance to ensure patients get the innovation they need at prices they can afford. All 50 Senate Democrats support the legislation; this is Congress’ chance to deliver on years of promises. This opportunity won’t come again soon.”

“Millions of AARP members have told us they are sick of Big Pharma ripping them off by charging three times more for medicines in the U.S.,” said Nancy A. LeaMond, Executive Vice President and Chief Advocacy and Engagement Officer at AARP. “Congress has an historic opportunity to finally bring down the price of prescription drugs and help address the impacts of inflation. Voters are watching, and they are tired of waiting for Congress to act.”

Just last week, 40 House Democrats sent a letter to congressional leadership calling on their colleagues to lower drug prices by passing the drug pricing reforms already agreed to in the Build Back Better Act. 

The drug price provisions under consideration will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines, including insulin; institute a hard cap on out-of-pocket drug costs for Medicare beneficiaries and limit copays on insulin for millions of Americans to $35 each month; and limit annual price increases to stop price gouging by drug corporations. 

“If Congress lets the pharmaceutical industry overcharge Americans and dictate astronomical prices for brand-name drugs in our country, then patients, workers, employers, and taxpayers will continue to shoulder the burden of prices that are nearly three times what people in other comparable nations pay,” the letter reads. “These reforms are long overdue. We urge swift action. Now is the time to get the job done.”

Read the full letter and list of signers here and below.
February 7, 2022
 
Dear Senator,
 
On behalf of more than 90 organizations representing patients, consumers, seniors, unions, small businesses, large employers, physicians, and disease advocacy groups, we urge the Senate to immediately advance a reconciliation package that includes the reforms to lower prescription drug prices agreed to in the Build Back Better Act.
 
Rising prices are a top concern for American families and employers. Even as we approach the third year of a pandemic, drug companies began the new year by hiking the prices of almost 750 life-saving and life-sustaining medications, undeterred by the financial hardship and health challenges facing Americans today.
 
If Congress lets the pharmaceutical industry overcharge Americans and dictate astronomical prices for brand-name drugs in our country, then patients, workers, employers, and taxpayers will continue to shoulder the burden of prices that are nearly three times what people in other comparable nations pay. Congress has repeatedly promised to address this problem, and the American people need the help now more than ever.
 
Right now, you have a time-limited opportunity to deliver relief to millions of Americans by permitting Medicare to negotiate for lower drug prices, capping copays and out-of-pocket costs for beneficiaries, and limiting annual price increases on life-saving and life-sustaining drugs to the rate of inflation for all Americans. More than 80 percent of Americans support these reforms — Democrats, Republicans, and independents alike. They are the most popular element of the Build Back Better Act. In the face of slim margins in the Senate, the current path to pass all of these critical reforms is through reconciliation. These reforms already have the support of all 50 Senate Democrats. Congress can pass these drug pricing reforms in short order and move the nation in a new direction, providing savings to patients, taxpayers, workers, employers, and the federal and state governments.
 
Enacting the drug price reforms agreed upon in the Build Back Better package will mark a truly historic shift in U.S. drug pricing policy. Not only will it break the pharmaceutical industry’s unilateral power to dictate prices to the American people, it will save lives, improve health, fight inflation, and put more money back into the pockets of American seniors, workers, and businesses.
 
These reforms are long overdue. We urge swift action. Now is the time to get the job done.


Signed:

AARP
AFL-CIO
AFSCME
Alliance for Retired Americans
American Academy of Neurology
American Federation of Teachers
American Medical Student Association
Americans for Democratic Action, Southern California
Be a Hero
Blue Shield of California
Centennial State Prosperity
Center for American Progress
Center for Medicare Advocacy
Center for Popular Democracy
Citizen Action of Wisconsin
Colorado Consumer Health Initiative
Communications Workers of America (CWA)
Community Catalyst
Consumer Action
COVID Survivors for Change
Doctors for America
Economic Alliance for Michigan
Families USA
Florida #insulin4all
Florida Alliance for Healthcare Value
Generation Patient 
Greater Philadelphia Business Coalition on Health
Health Access California
Health Action New Mexico
Health Care For All Massachusetts
Health Care Voices
Health Care Voter
Honest Arizona
Houston Business Coalition on Health
Indivisible
Initiative for Medicines, Access, & Knowledge (I-MAK)
Insulin For Life
International Association of Machinists and Aerospace Workers
International Brotherhood of Teamsters
International Union, United Automobile, Aerospace & Agricultural Implement Workers of America (UAW)
Jewish Alliance for Law and Social Action
Justice in Aging
Kentuckiana Health Collaborative
Knowledge Ecology International (KEI)
KS Business Group on Health
Lehigh Valley Business Coalition on Healthcare (LVBCH)
Little Lobbyists
Lower Drug Prices Now (LDPN)
Main Street Alliance
Maine Consumers for Affordable Health Care
Maryland Citizens’ Health Initiative
Massachusetts #insulin4all Chapter
Medicare Rights Center
Metro New York Health Care for All
Midwest Business Group on Health
MomsRising
Montana Association of Health Care Purchasers
National Alliance of Healthcare Purchaser Coalitions
National Committee to Preserve Social Security and Medicare 
National Education Association
National Multiple Sclerosis Society
Nevada Business Group on Health
New Jersey Citizen Action
North Carolina Business Group on Health
Our Revolution
Patients For Affordable Drugs Now
Pennsylvania Health Access Network
People’s Action
Pittsburgh Business Group on Health
PrEP4All
Prescription Justice
Progressive Democrats of America
Protect Our Care
Public Citizen 
Purchaser Business Group on Health
Rhode Island Business Group on Health
Salud y Fármacos
SEIU
Silicon Valley Employers Forum
Social Security Works
T1International
TakeAction Minnesota
Tennessee Health Care Campaign
The Alliance (WI, IL and IA)
UnidosUS Action Fund
UNITE HERE
United Mine Workers of America
United States of Care
Washington Health Alliance
WellOK – The Northeastern Oklahoma Business Coalition
West Health Institute 


Cc: 
The Honorable Joseph R. Biden, Jr., President of the United States
The Honorable Nancy Pelosi, Speaker of the U.S. House of Representatives
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“No More Excuses. Let Medicare Negotiate. Now.”

WASHINGTON, D.C. — Patients For Affordable Drugs Now released a new video featuring patients from across the country demanding that Congress follow through on promises to lower drug prices by passing the reforms in the Build Back Better Act. The two-minute video, titled “Patient Voices From Across America: A Message To Congress,” features 11 patient advocates who explain the personal impact of high drug prices and why Congress must move forward with the drug pricing reforms that will deliver relief to patients like them. 

“Now Congress is finally poised to let Medicare negotiate,” Kris, a patient from Denver who lives with four bleeding disorders, including hemophilia, says in the video. “It’s the most popular feature of the Build Back Better Act. More than 80 percent of Americans support it,” Marcus, from Cincinnati, who lives with type 1 diabetes, continues. Therese, from Ogden Dunes, Indiana, who lives with multiple sclerosis, adds, “We need Congress to finally stand up to the big drug companies and get it done.” Jacquie, from Waterloo, Iowa, who lives with Crohn’s disease, concludes, “We’ve never been closer. Don’t let this moment slip away.”  

The drug price provisions currently under consideration by the Senate will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines, including insulin; institute a hard cap on out-of-pocket drug costs for Medicare beneficiaries and on insulin copays for millions of patients; and limit annual drug price increases to stop price gouging by drug corporations. 

The final image of the video reads, “Stop Price Gouging. Lower Out-Of-Pocket. Let Medicare Negotiate. Now.” 

P4ADNow started off the year by releasing two ads, one in Washington, D.C., and one in West Virginia, calling on members of Congress to pass a reconciliation package including the already negotiated drug pricing reforms from the Build Back Better Act. P4ADNow also sent a joint letter with AARP emphasizing that the Senate must pass the landmark drug pricing reforms. A new report from P4AD takes a closer look at the drug industry’s price hikes and its impact on patients, underscoring the urgent need for Congress to act.

Read the video transcript below and watch the full video here. Patients are available to speak with press upon request.
TRANSCRIPT:

Eighteen years ago, pharma won a sweetheart deal that prohibits Medicare from negotiating lower drug prices. – Jacquie Persson

As a result, we’re paying almost four times what other nations pay for the same brand-name drugs. – Kami Guiden

I’ve had to ration my drugs and go without because the price is so high. No American should have to do that. – Iesha Meza

Now Congress is finally poised to let Medicare negotiate, but the only way to pass it is with 50 votes through reconciliation. – Kris Garcia

We’re so close. – Clayton McCook

It’s the most popular feature of the Build Back Better Act. More than 80 percent of Americans support it. – Marcus LaCour

Any reconciliation deal must include it. – Kris Garcia

Lily will need insulin for the rest of her life. We need the reforms in Build Back Better to cap insulin copays for millions of people with diabetes. – Clayton McCook

I’m on Medicare, and capping out-of-pocket costs at $2,000 will help me and millions of other patients. – Maureen Iten

Pharma jacks up prices every year. Limiting price increases to the rate of inflation would really help me. – Meg Jackson-Drage

Congress has talked and talked. Now’s the time to get it done. – Lauren Stanford

The votes are there. It can happen. The only thing in the way is opposition from Big Pharma. – Sheldon Armus

We need Congress to finally stand up to the big drug companies and get it done. – Therese Ball

Drug price reform must be included in any reconciliation package. – Iesha Meza

No more excuses. – Maureen Iten

No more political games. – Clayton McCook

Stop price gouging, lower out-of-pocket, and let Medicare negotiate. – Kami Guiden

We’ve never been closer. Don’t let this moment slip away. – Jacquie Persson
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TV Ad Features Three Patient Advocates: “Americans Can’t Wait Any Longer”

WASHINGTON, D.C. — Patients For Affordable Drugs Now launched a new video ad today calling on Congress to include the previously negotiated reforms that lower drug prices in any final reconciliation package. The 30-second video ad is running in Washington, D.C., and features three patient advocates: Therese Ball of Indiana, Kris Garcia of Colorado, and Iesha Meza of Arizona. In addition, the campaign includes digital static ads in D.C. as well as grassroots advocacy in key states, where patients call their senators and ask for their support on the current drug price provisions. 

The video ad opens with Therese, who lives with multiple sclerosis. “The medications I need to live are priced at over $7,000 every month,” she says. “Millions of Americans can’t afford the medicines they need to survive,” continues Iesha, who lives with type 1 diabetes and depends on insulin. Kris, who lives with multiple bleeding disorders, including hemophilia, adds, “Congress needs to let Medicare negotiate lower drug prices for us.”

“The landmark drug price provisions negotiated painstakingly over several months and included in the Build Back Better plan remain the top priority for Americans and are overwhelmingly supported by more than 80 percent of voters – Democrats, Republicans, and independents alike,” said David Mitchell, a patient with incurable blood cancer whose drugs carry a list price of more than $900,000 per year and founder of Patients For Affordable Drugs Now. “This legislation will save lives, lower prices, and fight inflation by holding the line on premiums and health care costs for patients, employers, employees, and taxpayers. Failure is not an option – we need Congress to pass these historic reforms in any reconciliation package that is finally agreed to.”

The ads launch as the Senate reconvenes to continue negotiations around the reconciliation package. The drug price provisions under consideration will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines, including insulin; institute a hard cap on out-of-pocket drug costs for Medicare beneficiaries; and limit annual price increases to stop price gouging by drug corporations. 

“Any reconciliation package must include reforms that lower drug prices,” the video ad concludes. “Americans can’t wait any longer.”

Watch the full ad here and view the digital ads below. 

P4ADNow also launched a new radio ad today in West Virginia calling on Senator Manchin to support the reconciliation package to allow Medicare to negotiate lower drug prices. All recent P4ADNow ads can be found here

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“We Need Senator Manchin’s Support. His Vote Will Make The Difference For West Virginians. Please, Senator Manchin, Don’t Let This Moment Slip Away”

WASHINGTON, D.C. — Patients For Affordable Drugs Now launched a new radio ad today as part of its ongoing campaign in West Virginia. The ad highlights Senator Joe Manchin’s opportunity to deliver on his strong support for Medicare negotiation to lower drug prices for West Virginians by swiftly passing a reconciliation package that includes strong drug price reforms. The campaign includes a new 60-second radio ad and grassroots advocacy, in which patients call the senator directly thanking him for supporting Medicare negotiation and asking him to support the reconciliation package, including the current provisions that will lower drug prices for West Virginians.

“Patients have been waiting nearly 20 years for Medicare to be allowed to negotiate lower prices on their behalf. Right now, we are closer than we have ever been to closing a deal that would be historic in lowering drug prices for West Virginians and all Americans,” said David Mitchell, a patient with incurable blood cancer whose drugs carry a list price of more than $900,000 per year and founder of Patients For Affordable Drugs Now. “Big Pharma is doing everything in its power to block this from happening, and we need Senator Manchin’s support for a reconciliation package that includes provisions allowing Medicare to negotiate. Patients have waited too long; we can’t let this moment slip away.”  

The ad launches as the Senate reconvenes and continues negotiations around the reconciliation package. The drug price provisions under consideration will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines, including insulin; institute a hard cap on out-of-pocket drug costs for Medicare beneficiaries; and limit annual price increases to stop price gouging by drug corporations. 

“It makes no sense at all that we don’t go out and negotiate. The VA does a tremendous job. Medicaid does it. Why doesn’t Medicare?” Senator Manchin says in the radio ad. The voiceover adds, “We’ve never been so close. The plan in Congress could pass right now. But we need Senator Manchin’s support. His vote will make the difference for West Virginians. Please, Senator Manchin, don’t let this moment slip away.” 

Listen to the full radio ad here.

P4ADNow also released a new TV ad today in Washington, D.C., demanding that Congress include the previously negotiated reforms that lower drug prices in any final reconciliation package. All of P4ADNow’s recent ads can be viewed 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, following the announcement that Congress will not pass Build Back Better this year:

“We are very disappointed that Congress will not pass reforms to lower drug prices before the end of the year. As Democrats in Congress consider how to move forward on a reconciliation package, however, the provisions painstakingly negotiated to lower drug prices must be maintained. 

“The drug price provisions in the current Build Back Better package are the top priority for Americans – overwhelmingly supported by more than 80 percent of voters – Democrats, Republicans, and independents alike. By allowing negotiations, capping price increases at the rate of inflation, and limiting out-of-pocket costs for seniors and people who are insulin-dependent, the historic reforms will make a meaningful difference in the lives of patients and all Americans. These reforms will also protect innovation by maintaining our current system in which drug companies will be able to set prices on new drugs and be rewarded with a period of exclusivity lasting five to 12 years. Further, they will be exempt from negotiations for nine to 13 years.

“Importantly, the drug provisions will fight inflation by holding the line on premiums and health care costs for employers, employees, and taxpayers. These provisions will actually produce a net savings for the government instead of contributing to the deficit. 

“Medicare negotiation to lower prescription drug prices passed the House and enjoys the support of all 50 Democratic senators. We hope to work with members in both chambers of Congress to finish the job and pass these landmark reforms swiftly in the new year. We have never been as close as we are now. Failure is not an option.”

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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 Build Back Better framework released today: 

“The lack of provisions to lower drug prices in the Build Back Better framework is a huge failure that will harm millions of Americans who are counting on Democrats and the president to deliver on their promises and provide desperately needed relief. It is an indictment of our entire political system that a handful of members of Congress who are working on behalf of Big Pharma have so far blocked reform. 

“On behalf of patients, we demand that congressional Democrats reject this framework until it includes the most popular provision: effective Medicare negotiation to lower drug prices for Americans. This means allowing Medicare to negotiate prices on expensive drugs crushing patients, inflationary caps on price increases in Medicare and the commercial sector, and capping out-of-pocket costs for Medicare beneficiaries. 

“Without Medicare negotiation, the Build Back Better framework goes against the will of 90 percent of voters — Democrats, Republicans, and independents alike. It maintains the status quo, leaving millions of Americans paying almost four times what people in other wealthy nations pay for the same brand-name drugs, and facing heartbreaking and life-threatening decisions between paying their bills and picking up their prescriptions. 

“Until these provisions are included, this plan does not deliver on the promises made by the president and Democrats and does not provide the relief patients need. It must be rejected.” 

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WASHINGTON, D.C. — In response to recent efforts by sponsors of a drug pricing bill to replace meaningful drug pricing provisions in the Build Back Better plan with features of their own bill, Patients For Affordable Drugs Now sent a letter to all six sponsors outlining why their legislation is not Medicare negotiation, but rather legislation designed to preserve the drug industry’s unfettered ability to keep dictating prices.

“The Reduced Costs And Continued Cures Act is nothing more than a fraud masquerading as negotiation,” David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now, says in the letter. “In fact, instead of allowing negotiation, the bill blocks negotiation on virtually all prescription drugs and preserves the power of drug companies to dictate monopoly prices. This bill would thwart the will of 90 percent of Americans who want Medicare to negotiate on their behalf.”

The letter examines the bill to reveal how the sponsors have constructed the legislation to preclude negotiation on most of the drugs that are costliest to patients and Medicare, using three criteria: 

1. Prohibiting negotiation on any drugs in Medicare Part D, which covers the majority of drugs and represents the most spending.
2. Prohibiting negotiation on any drugs in their periods of FDA-granted market exclusivity or initial patent exclusivity. 
3. Prohibiting negotiation on drugs once there is a competitor on the market, which typically occurs only after a drug’s period of exclusivity has expired.

Read the full letter below. 

“In order to stand with patients and your constituents, we are calling on you to halt your attempts to incorporate these broad exclusions into the Medicare negotiation provisions in the Build Back Better Act,” Mitchell continues in his letter to the six members. “Stand with patients for strong Medicare negotiation provisions and enforcement mechanisms that will empower negotiation on the costliest drugs taking a toll on patients; this will ensure Americans get the innovation they need at prices they can afford.” 

All six members supported H.R. 3, a comprehensive bill that allows Medicare to negotiate lower prices, in 2019. But this fall, Reps. Peters, Schrader, Rice, and Murphy voted against the provision’s inclusion in the Build Back Better plan. Reps. Correa and Gottheimer have not been faced with a vote on the legislation yet, but all six sponsors signed a letter expressing concern about the comprehensive legislation in addition to signing on to the pharma-backed legislation.  

P4ADNow is currently running an ad urging Democrats to keep their promise and pass real Medicare negotiation that will reduce prices on costly, monopoly brand-name drugs. 
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