AAM Opposes Drug Pricing Proposals Being Considered by Congress | Association for Accessible Medicines
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AAM Opposes Drug Pricing Proposals Being Considered by Congress

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.

FDA data shows generics reduce costs by as much as 90% compared to the brand-name drug when 6 or more generics enter the market.

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 

WSJ Oped A Toxic Drug-Price Deal

Other Opposition

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Resources

Please see below for shareable resources, press releases and other content relating to this issue. You can also use the search bar in the header of our website to search for specific keywords across all content on the site.

PDFNov 05, 2021Ericka Nguyen
AAM and Biosimilars Council Letter Oppose Build Back Better Act HR5376 11-05-21
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PDFFeb 22, 2021Ericka Nguyen
Roadmaps for Ensuring Patient Access to Generic and Biosimilar Medicines: Securing Sustainable Markets
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PDFJun 25, 2019Ericka Nguyen
Biosimilars Council White Paper-Failure to Launch-June 2019
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PDFFeb 02, 2021Ericka Nguyen
Potential Savings from Accelerating US Approval of Complex Generics
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Press Release Nov 2, 2021 Rachel Schwartz
AAM Opposes Latest Prescription Drug Reform Framework

Association for Accessible Medicines

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