ICYMI: DRUG PRICING 101: WHAT’S IN THE HISTORIC DRUG PRICING PROVISIONS POISED TO PASS SENATE AND HOW WILL IT HELP AMERICANS
Experts And Patients Held Press Call As Parliamentarian Reviews Biggest Health Care Bill Since ACA
WASHINGTON, D.C. — As the drug pricing provisions in the reconciliation package are being reviewed by the parliamentarian, drug pricing experts and patients held a press call today and walked through the impact that the historic reforms will have on Americans. Below is a quick round up of notable quotes and you can find a 2-pager that explains the drug pricing provisions here.
Here’s a roundup of quotes from participating organizations and speakers on the call:
“This reconciliation bill is historic and will lower prescription drug costs for millions,” said Protect Our Care Chair Leslie Dach. “Americans pay three times more for the same drugs as people do in other countries while drug companies make record-breaking profits. In the wealthiest nation on earth, no one should have to choose between putting food on the table and affording the medications they need to survive. The American people cannot wait any longer – it’s time to say no to Big Pharma and yes to America’s seniors and patients.”
“Seniors are hurting from the rising cost of groceries and gas – and they’ve already suffered for years at the pharmacy counter. Congress is on the verge of passing reforms that will finally allow Medicare to negotiate lower drug prices and put a cap on seniors’ out-of-pocket spending for prescriptions. We urge the Senate to stand up to Big Pharma and their army of lobbyists and pass this historic legislation.” —Nancy LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer
“The drug price reforms under consideration by the Senate right now are historic. They will, for the first time, bring an end to pharma’s unfettered pricing power and let Medicare negotiate lower prices, curb price gouging, and cap out-of-pocket costs for patients. We have been waiting nearly 20 years for these reforms; this is the biggest health care package since the Affordable Care Act. It’s time for Congress to get the job done.” —David Mitchell, cancer patient and founder of Patients For Affordable Drugs Now
“Living with multiple conditions brings a host of expensive drugs — to afford mine I work multiple drugs … Januvia alone carries a monthly list price of $521 and was the fourth most costly drug for Medicare Part D in 2020. I live in fear of my high drug prices. Under the Senate drug pricing package, expensive drugs like Januvia would be eligible for negotiation under Medicare, bringing lower prices for patients like me and savings for Medicare.” —Steven Hadfield, cancer and type 2 diabetes patient
“When I went on Medicare, I could not afford the over $7,000 a year for my MS DMT and had to stop my medication. My decision was based on money, not medicine. The proposals will help me tremendously. Although even $2,000 per year out-of-pocket is a lot of money, that cap on what I would have to spend on prescription drugs would allow me to afford to get back on my medication and I won’t have to worry about my MS progressing. Being able to spread out the $2,000 throughout the year, so I don’t have to worry about paying all of it in the first few months would be a huge relief for me. These things will immediately improve my quality of life and my health.” – Judy Wilson, multiple sclerosis patient and activist
“Lowering drug prices means that we have more opportunities to pursue higher education and careers, and have at least some stability when we can’t control our health. For me, the inflation cap provision would mean that drug companies would no longer be allowed to increase the price of my medications infinitely. The predictability of my drug pricing would be monumental for me. This critical moment is important for us as young adult patients who see this legislation as a vehicle to enabling the empowerment of our generation of patients and those to come.” —Sneha Dave, executive director Generation Patient and ulcerative colitis patient
You can find a policy explainer of what is in the drug pricing provisions here.
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When I text you ? ?? it means we are going to take on Big Pharma and lower drug prices.
Welcome to the Week in Review.
1. Drug Pricing At The Center Of Reconciliation
We are on the verge of a massive win for patients. Yesterday, President Biden called on Congress to pass a reconciliation package with the drug price reforms currently in the Senate. With clear support from Senator Manchin and all other Senate Democrats, the drug pricing provisions have a path to passage once the parliamentarian finishes her review. These historic provisions would finally rein in prescription drug prices for American families, saving $288 billion over the next decade. “Let’s bring down prescription drug prices,” said Secretary Raimondo on ABC News. “If you put on the floor a bill that reduces prescription drug prices, we would be both reducing inflation and reducing one of the most painful monthly costs that face millions and millions of families,” Senator Chris Coons said. Center For American Progress put it well: “After decades of inaction, Congress cannot let this effort for reform come and go.” (Politico, Axios, ABC News, CAP)
2. Patients Are United: Affordable Drugs Now
A new survey shows overwhelming, bipartisan support for the prescription drug pricing policies proposed by the Senate – 7 out of ten voters support these historic provisions that include allowing Medicare to negotiate drug prices. Ulcerative colitis patient Kolton Chapman shared his experience struggling to balance chronic disease, paying for schooling, and the high prices of his prescription drugs. “I was going to have to pick between paying for my school or paying for my meds,” he shared with the Ohio Capital Journal. “And I need my meds to stay alive.” No one should have to choose between their health and their schooling. Patients like Kolton are counting on Congress to lower drug prices by passing the popular provisions in the reconciliation package now. (Morning Consult, Ohio Capital Journal)
3. Pharma Inflating Lies
A report published this week found that PhRMA and top pharmaceutical companies have spent $147.3 million lobbying Congress against lowering drug prices since 2020. We’re not surprised – Big Pharma is doubling down on its outrageous spending, as drug pricing reforms are closer than ever to passing. The industry continues to spread lies about the provisions, saying, “prescription drug prices are not contributing to inflation,” a false claim that relies on misleading data that bundles generic prices with brand-named prices. Don’t just take our word for it. Treasury Secretary Yellen remarked on Thursday that current Senate drug pricing reforms would lower “the cost of one of the most expensive items in [Americans’] budgets” and be a “very positive way of addressing inflation.” Americans aren’t fooled by pharma fear-mongering – we have our eye on the ball to lower drug prices and bring relief to American families by passing comprehensive reforms. (Common Dreams, P4ADNow)
Have a great weekend, everyone!
Welcome to the Week in Review.
1. Ready For Reconciling
In the greatest indication of momentum yet, Senate Democrats submitted the latest text of their comprehensive drug pricing reforms to the Senate Parliamentarian this week — the next step in its path to passage through reconciliation. The legislation, which is supported by all 50 Senate Democrats and over 80 percent of Americans, will deliver relief from high drug prices for millions of patients by allowing Medicare to negotiate directly for lower drug prices, curbing drug company price gouging, and capping out-of-pocket costs for Medicare Part D beneficiaries. The CBO found that the new legislation will save taxpayers over $287 billion over 10 years and again debunked one of Big Pharma’s favorite myths, finding the legislation would decrease the number of new drugs coming to market by under 1 percent — not the nuclear winter depicted by the drug industry. Patients know the truth: We can have the innovation we need at prices we can afford. There is no time to wait, the Senate needs to get it done now. (Punchbowl News)
2. AbbVie Up To No Good
A report from the Senate Finance Committee this week found that drug giant AbbVie has been gaming the system by charging high prices, bringing in record revenues, and then avoiding U.S. taxes. The report finds that the U.S. is responsible for 75 percent of the pharma company’s sales, yet AbbVie reported just one percent of that for the purposes of U.S. income taxes. Big Pharma’s main goal? Big profits. (Washington Post)
3. Raising Prices Because They Can
In a much welcomed collaboration, the U.S. Patent and Trademark Office (USPTO) and the Food and Drug Administration (FDA) are joining forcesto crack down on pharmaceutical companies’ manipulation of our patent system. Right now, corporations abuse the system in order to impede competition and keep prices high. The new effort is a result of President Biden’s 2021 executive order calling on the USPTO and FDA to collaborate on patent reforms that promote competition and encourage true innovation. Patent shenanigans by drug corporations have increased the price of some prescription medications by more than 300 percent— leaving patients struggling to afford their medications while pharma executives pad their bottom line. Patients are grateful for this much needed oversight. (USPTO, Mad In America)
Have a great weekend, everyone!
Welcome to the Week in Review.
1. The Way Forward Is Clear
In a major sign of renewed momentum for passing comprehensive drug pricing reform through reconciliation, Senate Democrats are moving to submit a drug pricing framework based on last year’s House-passed provisions to the Senate parliamentarian. If enacted, these historic reforms — which reportedly include Medicare negotiation, penalties on drug companies that raise prices faster than the rate of inflation, and an out-of-pocket cap for Medicare beneficiaries — would bring much-needed relief to patients across the country. “The way forward is clear; the momentum is strong,” said David Mitchell, a cancer patient and founder of P4ADNow. “The Senate must pass the package through reconciliation this summer.” Let’s get the job done. — (The Washington Post, The Hill, P4ADNow, Las Vegas Sun)
2. 8 In 10 Recommend: Medicare Negotiation
A new poll shows that allowing Medicare to negotiate lower drug prices is overwhelmingly popular among voters of all political stripes, with 8 in 10 saying they support the provision. Americans are sick and tired of sacrificing their financial well-being to pay the high prices of prescription drugs while pharma CEOs take home tens of millions of dollars each year. Voters are sending the message loud and clear: We need Congress to pass Medicare negotiation now. — (Data for Progress, P4AD)
3. Raising Prices Because They Can
The U.S. government bought 105 million more doses of Pfizer’s COVID-19 vaccine this week in a deal amounting to $3.2 billion. This time, however, Pfizer is raising prices on the life-saving vaccine — American taxpayers are paying over $30 per dose compared to the price of $19.50 per dose in early contracts. Analysts say the price increases for the government may suggest even higher prices for the vaccine when it enters the commercial market. A reminder: The mRNA vaccine, which has shattered sales records and brought in billions of dollars for Pfizer, is based on technology developed in taxpayer-funded laboratories. In the third year of a pandemic, one thing has remained consistent: Drug companies are more than willing to take advantage of patients and taxpayers to maximize the bottom line. — (Reuters, FiercePharma)
One more thing: Senator Warnock held a Senate Aging Committee field hearing on Friday that focused on lowering drug prices. At the hearing, Georgia patients and advocates shared how their struggle with high drug prices have cost them their financial and mental health. “We were in our golden years,” said retiree Gretchen Spring, “but the only people seeing gold were the pharmaceutical companies.”
Have a great weekend, everyone!
Welcome to the Week in Review.
1. Keep Moving Full Steam Ahead
As talks between the White House and Senate Democrats progress, major drug pricing provisions, including Medicare negotiation, continue to be a top priority for inclusion in a reconciliation package. President Biden again told reporters this week that he believes Congress can pass reforms to lower drug prices. Secretary Yellen said, “We can bring down other costs that are burdening households like prescription drugs,” and National Economic Council Director Brian Deese said the White House is working closely with the Senate to move the reconciliation bill forward and is hopeful they can get the job done. But lawmakers must act quickly as the midterm elections draw nearer — time is running out to pass this legislation that will both lower prices for patients and save money for taxpayers. Senators, Americans are counting on you to deliver on your promises and get these reforms across the finish line. — (Bloomberg, The Hill, The Hill,The Post-Standard)
2. INSULIN Act: A Gift To Big Pharma
This week, Senators Shaheen and Collins unveiled a bill to lower insulin costs — an issue that has special poignancy for Americans, as 4 out of 5 adults who live with diabetes or are caregivers for someone with diabetes have gone into debt to pay for insulin. However, the legislation only addresses insulin copays without guaranteeing lower list prices, which will result in cost-shifting and lead to higher premiums and taxes. Make no mistake: This bill is a capitulation to Big Pharma that allows drug makers to continue hiking insulin prices while leaving patients with less money in our pockets. If senators are serious about helping patients, they must pass the package of comprehensive drug pricing reforms, including capping insulin copays to $35 and historic provisions such as Medicare negotiation, through reconciliation. — (Roll Call, P4ADNow)
3. Pharma’s Up To No Good
Pharma’s shady behavior has been in the spotlight this month. Throughout June, P4AD has been highlightingsomeofthedrug companies with the highest 2021 revenues and how they repeatedly price gouge patients to maximize their profits. A new OpenSecrets report also details the deluge of recent pharma lobbying spending. Just last year, the drug industry groups spent over $350 million lobbying at the federal level and tens of millions more in state capitols — all to keep prices high and continue filling their coffers at the expense of patients. — (P4AD, OpenSecrets)
Have a great weekend, everyone!
Who knows if the rumors are true about BTS breaking up? But what we do know is that we WILL break up Big Pharma’s monopoly pricing power.
Welcome to the Week in Review.
1. Reconciliation: It’s Alive!
The momentum to pass a reconciliation bill with drug pricing reforms is building as talks between Leader Schumer and Senator Manchin have progressed, with the majority leader’s staff reportedly taking the next steps to line up a vote for later this summer. President Biden said he believes the votes are there to pass drug pricing reform in an AP interview, and Speaker Pelosi also expressed optimism for the reconciliation bill, saying, “It’s alive.” Meanwhile, patients, advocates, and physicianswrote opinion pieces this week urging Congress to act quickly to lower drug prices. “It’s unfair that patients like me have to shell out thousands of dollars just to stay alive. We deserve better,” shares Bob Parant, a New York patient who lives with type 1 diabetes. “Policymakers face a choice: let prescription drug costs continue to rise unchecked, placing patients and families at continued risk, or pass sensible reforms that would make drugs more affordable for all Americans,” four doctors write. — (Politico, AP, New York Daily News, The Exponent-Telegram, The Hill, MedPage Today, The Philadelphia Inquirer)
2. Three Pinocchios For Pharma Front Group ? ? ?
A new fact check from The Washington Post debunks an ad from the pharma front group 60 Plus Association that dishonestly characterizes the drug pricing reforms before the Senate as a plan that would “strip $300 billion from Medicare” and leave patients with “fewer treatments and cures.” The truth? According to the nonpartisan Congressional Budget Office’s analysis, the reforms will save taxpayers and the federal government $300 billion while only reducing the number of new drugs coming to market by 0.8 percent over the next 30 years. In a desperate move to maintain the industry’s unfettered pricing power, pharma-allied groups are filling the airwaves with lies. Americans know better. — (The Washington Post)
3. Pulling Back The Curtain On Blood Thinners
In a letter to the Federal Trade Commission this week, Senator Klobuchar and Rep. Porter called on the agency to investigate the lockstep price hikes on the blood thinners Eliquis and Xarelto and whether they constitute a violation of antitrust laws. Eliquis and Xarelto, manufactured by BMS/Pfizer and Johnson & Johnson, respectively, were the subjects of a recent P4AD report examining how the systematic price increases and patent gaming on these drugs hurt patients and raise costs for taxpayers. We applaud the senator and representative for taking on the pharmaceutical industry and fighting on behalf of patients. — (FiercePharma)
4. More Wins For Patients!
On Tuesday, the Senate Committee on Health, Education, Labor, and Pensions passed an FDA bill that included three amendments to boost competition in the drug pricing system by easing the process for generic competition to come to market. One of the amendments, based on legislation P4ADNow has been advocating for since 2018, would close a loophole in the citizen petition process that brand-name drug makers have exploited to slow the approval of lower-priced generics to keep prices high. We thank Senators Murray, Baldwin, Hassan, and Paul for championing these amendments and urge the full Senate to pass this package with the citizen petition, orphan drug, and generic drug approval transparency reforms intact. — (P4ADNow)
5. Eyes On PBMs
The FTC is setting its sights on the byzantine practices of pharmacy benefit managers. On Thursday, the commission voted to study PBMs’ usage of rebates to determine if the system contributes to an anticompetitive prescription drug market that keeps prices high, and specifically pointed to insulin as a drug that has experienced soaring prices in part due to rebates paid to PBMs. This vote comes as a whistleblower suit alleges that CVS used its subsidiaries, including its PBM, Caremark, to push patients toward brand-name medications instead of cheaper generics in order to obtain higher rebates. The FTC’s decision to shine a light on these corporations and inject more transparency into the drug system is another welcome move for patients. — (Reuters, Endpoints News, FiercePharma)
One more thing: A new Gallup poll reveals that about 17 million Americans over 50 years old said they or a family member have not taken medication as prescribed to save money in the past year.
In a unanimous decision, the Federal Trade Commission voted this week to investigate the role of pharmacy benefit managers in the drug pricing supply chain and how their practices may influence high drug costs and patient access to drugs. As P4ADNow laid out in comments to the FTC, PBMs’ secret dealings have allowed them to become some of the most profitable players in the health care sector, and their opaque rebates and formulary decisions have a real impact on patient choice and the accessibility of cheaper generic competitors. P4ADNow has called for increased transparency and accountability into PBM practices; the commission’s investigation is a win for patients across the country. — (AP)
2. Soaring Prices Underscore Senators’ Work On Reconciliation
Passing comprehensive drug pricing reforms through reconciliation remains top of mind this week. As Treasury Secretary Yellen and Senator Kinghighlighted the importance of lowering prescription drug prices, Leader Schumer and Senator Manchin continued to discuss a framework for the reconciliation bill. Their work proceeds as a new research letter published in JAMA reveals the shocking growth of drug launch prices — the median price for a year’s supply of a new drug was $2,115 in 2008 and climbed to over $180,000 in 2021. It’s clear we need to end pharma’s unilateral pricing power to rein in soaring prices for patients. — (Punchbowl News, The Washington Post, CNN, WGME, Axios, NBC)
3. Life Or Death
Patientsandconstituentssharedtheirdrugpricingstories and advocated for reforms this week in news media and in letters to their local publications. In a CNBC segment, cancer patient and retired nurse Lynn Scarfuto described the life-or-death consequences of being unable to afford her medication, Imbruvica. “Too many Americans are forced to choose between buying the medications they need and paying for food, rent, gas, or utilities,” explains New Yorker Marie Santangelo. “I have found my payments increasing at the same time Big Pharma is receiving record profits,” shares Florida retiree Laura Fries. “We need this Congress to urgently pass a reconciliation package with comprehensive drug-pricing reforms to lower drug prices now,” writes Delaware patient Al Liebeskind. — (CNBC, Staten Island Advance, St. Augustine Record, Delaware State News, Nevada Current, Las Vegas Sun, The Capital Times, San Mateo Daily Journal)
One more thing: On Wednesday, a bipartisan group of senators sent a letter to the director of the U.S. Patent and Trademark Office urging the agency to address drug companies’ usage of patent thickets to insulate their products from competition.
President Biden, senators, and constituents all called on Congress to pass Medicare negotiation legislation this week. “We can reduce the price of prescription drugs by giving Medicare the power to negotiate with pharmaceutical companies and capping the cost of insulin,” President Biden writes in an op-ed explaining his plan to lower costs for Americans. At separate events with AARP chapters across the nation, Senators Durbin, Ossoff, and Blumenthal committed to continue fighting for lower drug prices for patients. “We’re out of time — every morning another American wakes up with a chronic disease like I did,” shares Samantha Cooksey Strickland, a multiple sclerosis patient. “Outrageous drug costs shouldn’t make the difference in how their future looks.” — (The Wall Street Journal, AARP Illinois, AARP Georgia, Fox61, Tallahassee Democrat)
3. What Are We Paying For?
A new analysis found that U.S. cancer mortality rates are similar to those of other wealthy countries even though the United States spends twice as much on cancer care. The researchers partly attribute these high expenditures to Medicare’s inability to negotiate lower prices, the frequent price hikes on cancer drugs, and FDA approval of expensive drugs without clear evidence of clinical benefit. The exorbitant sums that patients and taxpayers pay for cancer care are lining the pockets of drug companies instead of contributing to better health outcomes for Americans. It’s time to fix our broken drug pricing system. — (EurekAlert!, GoozNews)
One more thing: Alongside Public Citizen and 19 other organizations, P4ADNow signed a letter to President Biden on Wednesday urging him to nominate a director of the National Institutes of Health who will prioritize fair prices for taxpayer-funded medications.
