Similarities of corn and affordable drug prices? We really love it. I mean look at this thing! It has the juice! It should be affordable. We can tell you all about it!!! ?
Welcome To The Week In Review.
1. Success Sinking In
We’re still buzzing about the millions of patients who will benefit from the drug price reforms in the Inflation Reduction Act that became law last week. Older women, in particular, will feel the relief of the reforms as they typically take more prescription medications than men. The provisions will disproportionately help Black and Latino seniors who are twice as likely to have difficulty affording their medications than white Americans; in particular, the $35 insulin copay cap will be beneficial to these communities as diabetes is more prevalent in Black and Latino adults than in white adults. Big Pharma and its allies are up to the same nonsense, continuing to spew misleading claims about these historic reforms. But patients know better than to believe the lies. Contrary to pharma’s fearmongering, the legislation will save the federal government billions and many seniors thousands of dollars a year. Patients are clear: The Inflation Reduction Act will lower prices of and increase access to vital prescription drugs many seniors depend on. — (Forbes, Washington Informer, New York Times)
2. Top Officials Tout New Drug Price Reforms
Top officials in the Senate, House, and Biden Administration are celebrating the passage of the new drug price provisions in the Inflation Reduction Act and sharing with voters how the provisions will help them. President Biden highlighted the stunning defeat of the powerful pharmaceutical industry: “For decades, Big Pharma won but not this year! The American people won and Big Pharma lost!” Rep. Abigail Spanberger from Virginia emphasized the significance of the drug price reforms saying, “For the people who are most directly impacted, it’s life changing.” Senate Health, Education, Labor, and Pension Committee Chairwoman Patty Murray and Rep. Kim Schrier touted the legislation, which is expected to reduce prescription drug costs for 1.4 million people in Washington state alone. “To be able to pass the Inflation Reduction Act and actually make real changes that are coming soon and to give people some hope, to me, is just one of the best things we’ve been able to do this year,” Senator Murray shared. On Thursday, Centers for Medicare & Medicaid Services Administrator Chiquita Brooks-LaSure, who will be key to the implementation of the drug price provisions, told stakeholders, “It is truly a historic moment as we drive toward our vision of equitable, affordable healthcare coverage.” In Pennsylvania, Reps. Brendan Boyle and Dwight Evans held an event emphasizing how the Inflation Reduction Act “will make such a difference” to patients in their districts. At a roundtable about lowering prescription drug prices, Health and Human Services Secretary Xavier Becerra noted that the drug price provisions will, “pass along a lot of savings to many Americans who need it at this particular time.” The work to lower drug prices isn’t over, and Senator Catherine Cortez Masto reaffirmed her commitment to continue to take on Big Pharma at a roundtable she hosted this week in Las Vegas. She said, “To the extent that the pharmaceutical companies try to skirt the law and still try to make a profit off the backs of so many, we’re going to continue to introduce legislation in order to stop that.” We are grateful that top government officials are spreading the word about how the Inflation Reduction Act delivers relief to Americans from high prescription drug prices. — (Your Erie, Post Independent, P4ADNow, Axios, My Northwest, The Reflector, Northeast Times, KCRA, Las Vegas Review-Journal)
3. Opinions: Americans Express Gratitude For Lower Drug Prices
Americans across the country are sharing their stories and gratitude for the positive impact the new drug price provisions in the Inflation Reduction Act will bring to their communities. Vincent DeMarco of Maryland Health Care for All! Coalition and Lynn Heller from the Climate Access Fund celebrated the bill for delivering health benefits that lower drug costs. For many Medicare recipients, including a retired police officer who lives with Parkinson’s disease, the legislation will mean thousands of dollars in savings. Gail deVore of Colorado, a type 1 diabetic, wrote how the Inflation Reduction Act “finally reins in Big Pharma’s greed and drives down drug prices for millions,” and advocated for continuing the fight by lowering the price and cost of insulin for all patients who need it. Gene Faltus, from New Hampshire, is another patient helped by the drug price provisions. He wrote, “between the 25 prescriptions that keep me alive, the $7,000 annual out-of-pocket costs are quickly shrinking my savings…The Inflation Reduction Act will change my life.” Soon Gene, who lives with a variety of conditions including terminal cancer and cardiac conditions, will pay no more than $2,000 out of pocket for the drugs he needs. “So, as I watched Democrats in Congress pass the Inflation Reduction Act, I couldn’t help but feel excitement and relief.” — (Bangor Daily News, Baltimore Sun, Colorado Politics, Union Leader)
One More Thing: Check out this episode from the “This is Type 1” podcast featuring Iesha Meza, who shares her struggle with insulin rationing and her journey to becoming an advocate in fighting for lower prescription drug prices.
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!
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!
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
Organizations Representing Patients, Consumers, Seniors, Unions, Small Businesses, Employers, Physicians, Nurses, And Disease And Human Rights Groups Demand Action
WASHINGTON, D.C. — As the Senate prepares to vote on the Inflation Reduction Act, 77 organizations representing patients, consumers, seniors, unions, small businesses, employers, physicians, nurses, and disease advocacy and human rights organizations sent a letter to all Democrats in Congress urging them to immediately pass the historic prescription drug price reforms included in the Inflation Reduction Act.
“We are poised to pass the largest and most consequential health care bill since the Affordable Care Act – an historic moment to finally put patients first by lowering prices of prescription drugs in this country,” 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. “When Congress finishes its work and passes these drug pricing reforms, they will move the nation in a new direction, providing savings to patients, taxpayers, workers, and employers. Americans who overwhelmingly support the legislation are watching expectantly for Congress to seize this opportunity and pass the drug pricing provisions now.”
This legislation will, for the first time, authorize Medicare to negotiate prices directly for some of the most expensive prescription medicines; institute a cap on out-of-pocket drug costs for Medicare beneficiaries; and limit annual price increases to stop price gouging by drug corporations. CBO estimates savings of almost $300 billion to the federal government alone.
“Lowering prescription drug prices is the number one health issue Americans want to see solved, and we’re on the cusp of making that a reality,” Nancy LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer said. “AARP urges Congress to take action to allow Medicare to negotiate the price of prescription drugs for the first time, saving seniors thousands of dollars and needless hardship.”
“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. “In a time of great division in our nation, this legislation has overwhelmingly bipartisan support. More than 70 percent of Republicans, Democrats, and independents back each of these reforms, which have consistently been the most popular element under discussion for reconciliation…Congress has repeatedly promised to address this problem, and the American people need the help now more than ever.”
There is enthusiastic momentum to pass the drug price provisions in the Inflation Reduction Act. All Senate Democrats support them, and Majority Leader Schumer said Democrats are excited to advance the popular drug price reforms this weekend. Speaker Pelosi is expected to promptly bring the House back to vote on the legislation next week. On Thursday, nearly a third of the Democratic senators, including Majority Leader Schumer, joined advocacy groups on Capitol Hill for a press conference calling for the passage of the Inflation Reduction Act including the drug price reforms. President Biden is prepared to sign this package when it reaches his desk, fulfilling a promise and bringing relief to millions.
Read the full letter and list of signers here and below.
__________
August 5, 2022
Dear Members of Congress,
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. On behalf of more than 75 organizations representing patients, consumers, seniors, unions, small businesses, employers, physicians, nurses, and disease advocacy and human rights organizations, we urge the Senate to immediately pass the Inflation Reduction Act.
The legislation is truly historic because for the first time ever it will:
Require Medicare to negotiate directly with pharmaceutical corporations for lower drug prices — a reform that has been sought for almost 20 years;
Discourage drug companies from increasing their prices faster than the rate of inflation, a reform that has special importance right now as we seek to curb the rising cost of everyday expenses;
Cap annual out-of-pocket costs for Medicare beneficiaries at $2,000 when they are currently unlimited and can run to more than $15,000 and expand the Part D low-income subsidies by expanding the income threshold for eligibility from 135 percent to 150 percent of the federal poverty level.
In a time of great division in our nation this legislation has overwhelmingly bipartisan support. More than 70 percent of Republicans, Democrats, and independents back each of these reforms, which have consistently been the most popular element under discussion for reconciliation. Congress can pass these drug pricing reforms before the August recess and move the nation in a new direction, providing savings to patients, taxpayers, workers, and employers. CBO estimates savings of almost $300 billion to the Federal government alone.
Rising prices are a top concern for American families and employers. Undeterred by the financial hardship and health challenges facing Americans today as a result of the pandemic, drug companies have already raised the prices of their products almost 1,200 times in the first seven months of the year — more than in the same period in 2020 and 2021.
Congress must seize this opportunity to stop the pharmaceutical industry from overcharging Americans with astronomical prices for brand-name drugs. Patients, workers, employers, and taxpayers should not continue to shoulder the burden of prices in this country that are nearly three timeswhat people in other comparable nations pay.
Congress can make history in the next week. Pass the Inflation Reduction Actand send it to the President for his signature. Not only will it break the pharmaceutical industry’s unilateral power to dictate prices to the American people, it will save lives, improve health, curb the impact of inflation, and put more money back into the pockets of American seniors, workers, and businesses.
Congress has repeatedly promised to address this problem, and the American people need the help now more than ever.
Signed:
AARP AFGE Local 704 AHEC West (Maryland Area Health Education Center West) AIDS Healthcare Foundation Alliance for Retired Americans Alliance of Community Health Plans American Academy of Neurology American Federation of Teachers Black Health Commission Blue Shield of California Building Back Together Campaign for a Family Friendly Economy Centennial State Prosperity Center for American Progress Center for Popular Democracy Children’s Action Alliance Colorado Consumer Health Initiative Committee to Protect Health Care Communications Workers of America Community Catalyst Consumer Action COVID Survivors for Change Crohn’s and Colitis Young Adults Network Democratic Disability Caucus of Florida Doctors for America Families USA For Our Future Action Fund Generation Patient Health Access CA Health Care For All Massachusetts Health Care Voices Heath Action New Mexico Hispanic Federation Honest Arizona Human Rights Watch Invest in America Action Kentucky Voices for Health KS Business Group on Health Latino Victory Lower Drug Prices Now Main Street Alliance Maryland Health Care For All Coalition Medicare for All Coalition Medicare Rights Center Metro New York Health Care for All Missouri Health Care for All MomsRising MoveOn Civic Action National Health Law Program National MS Society Network Lobby for Catholic Social Justice New Jersey Citizen Action Nurses for America Oregonizers Patients For Affordable Drugs Now Pennsylvania Health Access Network People’s Action Prescription Justice Protect Our Care Public Citizen R2H Action [Right to Health] Salud y Farmacos SEIU Social Security Works SWAA CT Coordinating committee T1International USA TakeActionMN Tennessee Health Care Campaign The AIDS Taskforce of Greater Cleveland The 99% Pennsylvania campaign of the Pennsylvania Budget and Policy Center The Consortium United States of Care Universal Health Care Foundation of Connecticut Unrig Our Economy Voices for Progress West Health Institute West Virginians for Affordable Health Care
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New Reporting Exposes Big Pharma’s Lies On Inflation, Medicare Savings, And Generic Competition
WASHINGTON, D.C. —As Congress is poised to pass the largest health care bill since the Affordable Care Act, Big Pharma is using every scare tactic possible to try to stop the Inflation Reduction Act from passing. This week, independent experts debunked the industry’s lies about the drug price provisions’ impact on innovation, Medicare savings, and generic competition.
Here’s a round-up:
Inflation: Big Pharma falsely claims “prescription drug prices are not fueling inflation.”
This claim relies on false data that bundles generic and brand-name hikes. A new report from the non-profit, nonpartisan Committee for a Responsible Federal Budget found that the economic impact of the drug price reforms would be “very deflationary,” underscoring the contribution of rising drug prices to inflation and highlighting how lower prices will fight inflation.
A letterreleased this week by 126 top economists also concludes that the drug price provisions in the Inflation Reduction Act will put “downward pressure on inflation.”
2. Medicare Savings: Big Pharma falsely claims the bill will “strip $300 billion from Medicare.”
The nonpartisan Committee For Responsible Federal Budget released a report this week that called the ads “misleading” and showed the government would save nearly $300 billion while improving benefits and saving patients and taxpayers billions.
According to the Congressional Budget Office, the drug price measures will save Medicare, taxpayers, and patients nearly $300 billion by lowering drug prices and reining in spending. Both the Washington Post and Kaiser Health News with Politifact debunked this claim earlier this summer.
3. Generic Competition: The drug industry falsely claims that the bill will make less-expensive generic drugs less likely to come to market.
An Axios article explains that the Medicare negotiation provisions in the Inflation Reduction Act actually promote generic and biosimilar competition by disincentivizing the brand-drug company patent gaming that blocks competition and keeps prices high. A brand-name drug is only eligible for negotiation if it does not face generic competition, encouraging generics to come to market and use market forces to drive down drug prices.
