Seven PhRMA execs testify before the Senate Finance Committee

  • Post author:
  • Post published:February 28, 2019
  • Post category:Updates

On Monday, seven executives of pharmaceutical companies testified before the Senate Finance Committee.  While there weren’t any major aha moments, it was interesting to see how Senators from both sides of the aisle seemed to be in agreement on the problem – the rising drug prices are the responsibility of the pharmaceutical industry.  A pharmaceutical industry that is very vested in blaming everyone else for rising drug prices.

With that said, there were a number of issues that seemed to get tacit approval from all seven executives.  In fact, the head of the Pharmaceutical Lobby, PhRMA has even gone so far as to endorse a couple of these.  Of course, it is all in the details, but this is a place to start.

  1. CREATES Act – This legislation allows generic drug makers to sue the makers of brand name prescription drugs to force them to allow them to bring the generic versions of those drugs to market.  Currently, generic drug makers require many lots of brand drugs for trial and to prove that the effects are identical.  Pharmaceutical companies utilize a variety of means to limit generics from coming to market.
  2. Various reforms to Medicare Part D – Part D is the prescription drug plan.  Currently, Medicare Part D has a maximum of $5,000 out of pocket per year with a 5% payment indefinitely.  One proposal would offer a yearly cap on the 5%, say $10,000.
  3. Preserve Access to Affordable Generics Act – Currently, if a generic is having trouble getting to market due to a dispute with the brand maker, they sue them and settle out of court.  This generally results in the generic being paid by the brand manufacturer to delay coming to market with the generic.  This is also knows as Pay for Delay, which some suggest violates a variety of anti-trust laws.

These three issues that seem to have wide appeal from the pharmaceutical industry are far from perfect.  However, they are a real starting point.  More importantly, with the support from all the parties – Republicans, Democrats, President and at least tacit approval from the pharmaceutical industry, it seems like these have a real potential to see some action in this Congress.

We will continue following these developments.