Legislative Efforts to Control Rising Drug Prices
With some ophthalmology drugs facing sharp price increases, the Academy has focused on supporting congressional efforts to increase price transparency and boost competition to drive down prices. In the 116th Congress, the Academy supported the Creating and Restoring Equal Access to Equivalent Samples (CREATES) Act, which was signed into law (Public Law 116-94) in December 2019. The new law seeks to eliminate barriers for generic drug developers to enter the market and aligns with the Academy’s goal of improving competition in the generic drug marketplace.
The Academy also provided input on competing proposals in the Senate and House of Representatives that offer very different paths towards addressing high drug prices. While not the pathway advocated by the Academy, in December 2019, the House approved the Elijah E. Cummings Lower Drug Costs Now Act, that among other things, would give the HHS Secretary the authority to directly negotiate with drug companies for high cost drugs. The significant savings from this bill, HR 3, would be used to expand the Medicare program to include vision, hearing, and dental benefits. The House passed HR 3 along party lines, and the Senate is not expected to act on the bill before the end of the year.
Leaders on the Senate Finance Committee, Chairman Chuck Grassley, R-Iowa, and Ron Wyden, D-Ore., collaborated on their own proposal to address high drug prices. The Academy weighed in on S 2543, the Prescription Drug Pricing Reduction Act, to highlight concerns with provisions that would impact Medicare Part B drug payment. The Senate has yet to act on the Finance Committee legislation.