The State of Illinois is considering legislation (HB 1780) to establish a statewide drug take back program funded almost exclusively by generic drug manufacturers. HB 1780, as currently drafted, would disproportionately impact the makers of low-cost generic medicines instead of the manufacturers of high-cost brand-name drugs. Generic medicines account for less than 2% of health care spending. Yet although generic manufacturers only generate a small fraction of the revenue of brand-name drug companies, generic companies will be forced to foot the bill. This is wrong and bad for patients who depend on more affordable generic medicines. AAM opposes HB 1780 in its current form and recommends, at a minimum, that operational costs be based on the total revenue companies take in from prescription drugs.
Generic manufacturers compete in a highly competitive market. Generic competition lowers the cost of prescription drugs significantly. According to FDA, generic competition drives cost savings of 95% when six or more competitors offer a specific drug. Given this level of competition in a commoditized market with razor thin margins increased operational costs or onerous new requirements can make it too expensive for a manufacturer to stay in business, which leads to drug shortages.
Patients in Illinois benefit from access to life-saving, lower-cost generic medicines. In 2020, generics saved Illinoisians $12.7 billion. HB 1780 would jeopardize the ability of generic manufacturers to sustainably produce low-cost medicines and as a result put these savings at risk.
Importantly, the State of Illinois already has a robust statewide drug collection system in place. Created by the Pharmaceutical Products Stewardship Work Group, MyOldMeds.com provides consumers with a tool to easily locate kiosks and other disposal options. In Illinois, 96% of residents live within twenty minutes of one of the 549 kiosks. Nearly 89% live within ten minutes.
Without changes, HB1780 puts patient access to generic medicines at risk. AAM opposes HB1780.
Read AAM's Veto Request Letter
Read AAM's Letter to Gov. Pritzker
Download Illinois State Savings Fact Sheet
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If you are a patient that lives in Illinois, send a message to your lawmaker and tell them to VETO HB 1780!
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