The pharmaceutical industry has always had a long list of Congressional demands, but only recently has the insincerity of those demands become so public and obvious.
A few weeks ago, a major pharmaceutical company finding We strongly oppose the Biden administration’s pursuit of “march-in rights.” This effectively allows the White House to seize patents on certain drugs that it deems too expensive.
There should be enough free-thinking lawmakers willing to thwart the regulatory aspirations of drug companies.
Who can blame them? Intellectual property rights are the foundation of American innovation. Without these, the U.S. healthcare industry would be reduced to its current shell. Prices will rise, consumer choice will decline, and job growth and access to health care will be dramatically reduced. So drug companies have a right to argue that this government overreach is unwelcome news.
But at the same time, pharmaceutical companies continue to fight agreement Regarding other proposed regulations consistent with economic interests.
The pharmaceutical industry spends millions of dollars on: advertisement and lobbying activities The hope is to persuade Congress to regulate pharmacy benefit managers, entities hired by employers (both government and private), insurance companies, and others to negotiate prices with big drug companies.
Pharmaceutical companies should know that PBMs have a history of lowering drug costs by helping health plans take greater advantage of cheaper generic drugs that compete with brand names.
The Office of Management and Budget said in Congressional testimony that PBMs “stimulated a very dramatic shift from branded drugs to generic drugs…This is why Medicare Part D costs are much lower than originally expected.” This is the main explanation.”
According to the Government Accountability Board in 2019 study, those savings were amazing. GAO found that PBMs helped offset Medicare Part D spending by 20%, or $29 billion. 2023 report A report from the Department of Labor’s inspector general included similarly alarming statistics about how much PBMs save health care consumers.
Nevertheless, pharmaceutical companies continue to push for regulation of these entities.
It may seem impossible, but Anyone While Congress will listen to the pharmaceutical industry about the obvious dishonesty behind these two regulatory priorities, the truth is that money speaks in politics. During the 2016-2022 election cycle, the top 10 pharmaceutical companies Over $50 million It consulted members of both parties, and as a result both parties supported its legislative goals.
There must be enough free-thinking members of Congress willing to thwart pharmaceutical companies’ PBM regulatory ambitions. History has already shown that such rules are a complete disaster for the vulnerable Americans the pharmaceutical industry professes to help. Take a look at the “rebate rule” proposed by the Trump administration to curb the bargaining power of PBMs. The Congressional Budget Office states that if this rule were in effect, boosted Federal spending increased by more than $170 billion. Is this really an idea that anyone would want to revive?
Congress should remain committed to health care policies that stimulate competition, improve the quality of care, and reduce costs. That means defeating Joe Biden’s right-of-entry plan, but also ensuring that PBMs are protected from government interference. Falling into the pitfalls of overregulation and other interest group-driven regulatory efforts benefits no one but the self-serving industries pushing the measures.
