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In response to widespread public uproar over the soaring prices of prescription drugs, U.S. Sen. Al Franken (D-Minn.) and 15 other Senators introduced landmark legislation on March 29 that would lower the cost of prescription medications for all Americans.[1] The sweeping Improving Access to Affordable Prescription Drugs Act — which was also introduced by four members of the U.S. House of Representatives[2]— offers a wide-ranging package of reforms that would increase access to drugs for...
In response to widespread public uproar over the soaring prices of prescription drugs, U.S. Sen. Al Franken (D-Minn.) and 15 other Senators introduced landmark legislation on March 29 that would lower the cost of prescription medications for all Americans.[1] The sweeping Improving Access to Affordable Prescription Drugs Act — which was also introduced by four members of the U.S. House of Representatives[2]— offers a wide-ranging package of reforms that would increase access to drugs for consumers and hold pharmaceutical corporations accountable for wrongdoing.
Two provisions of the bill would substantially reduce prescription drug costs for patients covered by Medicare Part D.[3] The first would allow the U.S. Secretary of Health and Human Services to negotiate Medicare Part D prescription drug prices with pharmaceutical companies. If such negotiations failed, the Secretary could establish prices based on the amount that the Department of Veterans Affairs or certain other federal agencies pay — considerably lower than the prices that Medicare patients currently pay. Medicare Part D represents 7 percent of total global prescription drug spending, but rather than using Medicare’s purchasing power to attain lower prices, the Secretary is explicitly forbidden from negotiating with drug companies under current law.
The second Medicare-related provision would accelerate closure of the dreaded Part D coverage gap known as the “donut hole.” Under the current 2017 donut hole, once a Medicare patient reaches the initial limit of $3,700 on covered prescription drugs, he or she must pay 40 percent for covered drugs until reaching the catastrophic cap of $4,950. Under Franken’s bill, a Medicare patient’s cost share after reaching the donut hole would be reduced to 25 percent.
Other parts of the legislation would curb pharmaceutical corporations’ monopoly abuses, which keep prices high; penalize companies that engage in price gouging; and cap out-of-pocket medicine costs under private health insurance plans.
According to Peter Maybarduk, director of Public Citizen’s Access to Medicines Program, “This is one of the most comprehensive reforms of the pharmaceutical industry ever proposed. Medical treatment rationing is a painful reality for millions of Americans. Americans are splitting pills, skipping pills and making impossible decisions about when we can afford to pay for groceries versus when we can afford to pay for the medical care our families need. The core problem is monopoly power. This legislation is a deep challenge to the corrosive political influence of the pharmaceutical industry.”[4]
Call your Senators and House member today and urge them to support the Improving Access to Affordable Prescription Drugs Act.
References
[1] Congress.gov. S.771 – Improving Access to Affordable Drugs Act. https://www.congress.gov/bill/115th-congress/senate-bill/771/text. Accessed April 12, 2017.
[2] Congress.gov. H.R. 1776 – Improving Access to Affordable Drugs Act. https://www.congress.gov/bill/115th-congress/house-bill/1776/text. Accessed April 12, 2017.
[3] Public Citizen. Improving Access to Affordable Prescription Drugs Act section-by-section summaries and context. http://www.citizen.org/documents/improving-access-to-affordable-prescription-drugs-act-summary-and-context.pdf. Accessed April 12, 2017.
[4] Public Citizen. Landmark legislation would lower U.S. prescription prices. https://www.citizen.org/media/press-releases/landmark-legislation-would-lower-us- prescription-prices. Accessed April 12, 2017.
