Biden pushes for lower drug prices in $3.5 trillion budget proposal
PhRMA called Biden's push "misguided" and says it fails to address an insurance system that shifts the cost of treatments onto patients.
Photo: Stefani Reynolds/Getty Images
President Biden called on Congress to pass solutions to lower prescription drug prices and hold brand name drug manufacturers accountable. During Thursday's speech, the president also said Medicare should have the ability to negotiate lower drug prices.
The president called for Medicare to cap yearly out-of-pocket drug costs for beneficiaries, as well as backing Food and Drug Administration efforts to accelerate the development of generic medicines, which typically have far lower costs to consumers.
Biden also called for states to work on plans to import drugs from Canada, where costs are also much lower.
Biden also proposed penalizing drugmakers who raise prices out of balance with inflation.
The Campaign for Sustainable Rx Pricing (CSRxP) lauded what it called a "landmark speech" from President Biden, charging Big Pharma's "egregious pricing practices" for creating a crisis of affordability.
"Policymakers must deliver on repeated promises to hold the industry accountable and lower drug prices," CSRxP executive director Lauren Aronson said in a statement. "CSRxP looks forward to continuing to work with the administration and Congress to ensure these, and additional solutions like making Big Pharma pay their fair share in the catastrophic phase of coverage, are passed into law."
PhRMA president and CEO Steve Ubl released his own statement that said while his organization stands ready to work with lawmakers and do their part to help patients see lower costs at the pharmacy, the president's plan is a misguided approach.
"Unfortunately, the policies the president outlined today would undermine access to lifesaving medicines and fails to address an insurance system that shifts the cost of treatments onto vulnerable patients," Ubl said. "Many in Congress know that access to medicine is critical for millions of patients and Medicare is not a piggy bank to be raided to fund other, unrelated government programs.
"This is a misguided approach. The recent infrastructure bill is a reminder that bipartisan reform is possible, and patients deserve the same bipartisan leadership to help ensure they have access to their medicines with out-of-pocket costs that are affordable."
WHY THIS MATTERS
The push for lower drug prices is part of the $3.5 trillion budget proposal that Democrats want to pass through reconciliation, which requires a simple majority vote for approval. The $3.5 trillion bill is expected to be paired with a $550 billion bipartisan infrastructure bill that includes $65 billion for broadband infrastructure.
Prescription drug prices in the U.S. are significantly higher than in other nations, with prices in the United States averaging 2.56 times those seen in 32 other nations, according to a RAND Corporation report released in January. Health systems, including inpatient and nonacute environments, can expect a 3.29% increase for pharmaceutical purchases made from Jan. 1 to Dec. 31, 2021, according to Vizient's July 2020 Drug Price Forecast.
THE LARGER TREND
In May, the President called on Congress to lower prescription drug prices as part of his administration's Fiscal Year 2022 Budget. During a Joint Address to Congress in April, the president also called for lawmakers to work towards bipartisan solutions to lower prescription drug prices, including giving Medicare the ability to negotiate drug prices.
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