Seniors’ Access
Is at Risk
Build Back Better Undermines Patient Access
Generic and biosimilar medicines save patients and U.S. health care trillions of dollars. Congress is considering policies putting patient access to these affordable medicines at risk.
Seniors’ Access
Is at Risk
Build Back Better Undermines Patient Access
Generic and biosimilar medicines save patients and U.S. health care trillions of dollars. Congress is considering policies putting patient access to these affordable medicines at risk.
Take Action Against the Misguided Drug Pricing Proposals Being Considered by Congress
The drug price negotiation framework that Congress is considering in its budget reconciliation package exchanges the proven cost reduction of generic and biosimilar market-based competition for a short-term hope of savings through direct government price limits.
Enhance market competition so generic and biosimilar medicines can do an even better job of their decades-proven work reducing spending on expensive brand-name drugs. Without it, brand monopolies could last forever.
Meanwhile, the budget proposal’s application of inflation-based rebate penalties to generics and biosimilars would only further impede this industry’s ability to sustainably produce and manufacture lower-cost medicines for America patients. The vast majority of generic medicines are available at less than a $1 per unit and changes to the average manufacturer price (AMP) often reflect dynamics in the market outside of our control. In a recent survey of AAM’s member companies, the vast majority of instances in which the manufacturers paid a similar penalty in Medicaid were due to regular, market-driven changes to how medicines are purchased and not the result of increases in list price.
Already, the misguided penalties in Medicaid could lead to drug shortages, let’s not compound that error.
Penalties might lead to shortages and negotiations that could reduce access for America’s patients. That is why we are opposing the budget reconciliation proposal being considered now by Congress.
Take Action Against the Misguided Drug Pricing Proposals Being Considered by Congress
The drug price negotiation framework that Congress is considering in its budget reconciliation package exchanges the proven cost reduction of generic and biosimilar market-based competition for a short-term hope of savings through direct government price limits.
Enhance market competition so generic and biosimilar medicines can do an even better job of their decades-proven work reducing spending on expensive brand-name drugs. Without it, brand monopolies could last forever.
Meanwhile, the budget proposal’s application of inflation-based rebate penalties to generics and biosimilars would only further impede this industry’s ability to sustainably produce and manufacture lower-cost medicines for America patients. The vast majority of generic medicines are available at less than a $1 per unit and changes to the average manufacturer price (AMP) often reflect dynamics in the market outside of our control. In a recent survey of AAM’s member companies, the vast majority of instances in which the manufacturers paid a similar penalty in Medicaid were due to regular, market-driven changes to how medicines are purchased and not the result of increases in list price.
Already, the misguided penalties in Medicaid could lead to drug shortages, let’s not compound that error.
Penalties that might lead to shortages and negotiations that could reduce access, just doesn’t add up for America’s patients. That is why we are opposing the budget reconciliation proposal being considered now by Congress.
Op-eds, Blogs and Opposition
- Letter sent to Speaker Pelosi Opposing Build Back Better Act
- Wall Street Journal Oped “A Toxic Drug-Price Deal”
- STAT Oped by AAM CEO Dan Leonard “The hurried push by Congress to address drug costs shouldn’t undermine the vast savings from generics and biosimilars”
- Blog “Inflation-Based Rebates Need Not Apply”
- Blog “Medicare Negotiations Serve as a Catalyst to a Perpetual Monopoly”
- Blog “Inflation Rebate Proposal Builds on Bad Policy for Generics”
Other Opposition
- Taxpayers Protection Alliance: Prescription Price Controls Harm Access to Life-Saving Medication
- Taxpayers Protection Alliance: Taxpayer Group Slams Proposed Prescription Drug Pricing Plan
- Citizens Against Government Waste: Schumer Announces Deal to Lower Prescription Drug Prices
- National Association of Manufacturers: Drug Price Controls Threaten Innovation and Patient Health
- American Consumer Institute: Strangling Generic Drugs is the Wrong Path to Lower Prices
- Ike Brannon (Forbes): The BBB’s Threat To Biosimilar Drug Development
Resources
- IMS Institute for Healthcare Informatics, “Price Declines after Branded Medicines Lose Exclusivity in the U.S.,” January 2016
- FDA, “New Evidence Linking Greater Competition and Lower Generic Drug Prices,” December 2019.
- AAM, “Securing Sustainable Markets: Roadmaps for Ensuring Patient Access to Generic and Biosimilar Medicines,” February 2021.
- Biosimilars Council, “Failure to Launch: Patent Abuse Blocks Access to Biosimilars for America’s Patients,” June 2019.
- Alex Brill, “Potential Savings from Accelerating US Approval of Complex Generics,” February 2021
- AAM “2021 U.S. Generic and Biosimilar Medicines Savings Report,” October 2021
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