AAM All Access Podcast - Dan Leonard speaks with Mary Beth Powers, President and CEO of CMMB.
Package Places Generic & Biosimilar Access at Risk
America can’t afford health care without robust access to the generic and biosimilar medicines that already save patients and the U.S. health care system trillions of dollars. Congress is now considering brand new policies as part of its budget reconciliation package that place senior patients' access to these affordable medicines at risk.
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.
AAM 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"
- Axios Article “A Surprising Opponent of Democrats’ Drug Pricing Plan: Generics”
- 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"
- 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: Congress Should Listen to Voters and Reject Drug Price Controls
- 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
- R Street Institute: ‘Build Back Better’ Could Limit Access to Prescription Drugs
- National Taxpayers Union: NTU-Led Coalition Warns of BBB's Impact on Drug Competition
- Citizens Against Government Waste: The Build Back Better Act Would Seriously Harm the Generic Drug Industry