Even though generics and biosimilars provide consistent savings for taxpayers and consumers, today’s Medicare patients too often face obstacles to using these lower-cost options. This is a result of outdated policies that can unintentionally encourage plans to prioritize formulary placement of high-cost brand drugs and that fail to reflect the emergence of new competitive therapies.
In the debate over how to lower the cost of prescription drugs, one thing is certain: Generic competition drives savings for America’s patients and our health care system. The introduction of generic medicines offers patients the same high-quality medicine as the brand-name drug, but at an average price that is 39% lower according to the U.S.
WASHINGTON, DC (February 20, 2020) — “America looks to new generic drugs for significant savings on medicine, but our newest data show Medicare and commercial health plans delay their coverage. Delayed competition from generics increases costs for patients, taxpayers and employers and rewards the makers of high-priced brand-name drugs.
WASHINGTON DC (January 23, 2020) –“Today’s report highlights the need to refine the Medicare program to support savings through generic drug substitution. The continued use of high-cost brand drugs instead of generics causes higher spending for patients and taxpayers.”
ATTRIBUTE TO: Chip Davis, President and CEO
Generic medicines are an integral component of America’s pharmaceutical care system, driving substantial savings to patients and public programs. Even as spending on prescription drugs continues to rise in public programs, the use of generic medicines has blunted increasing brand drug prices, generating savings of $293 billion in 2018 alone. In fact, the average price of generic drugs covered under Medicare Part D in 2017 was only 26% of their average price in 2006.
Congress created Inter Partes Review (IPR) to improve patent quality and expedite access to safe and affordable generic and biosimilar medicines. IPR is a process that allows patent experts to take a second look at patents and ensure that every granted patent represents true innovation. This graphic demonstrates how IPR improves patent quality, accelerates competition and makes lower-cost generics and biosimilars accessible to U.S. patients. Learn more in this infographic:
The CREATES Act passed! Patients will now score greater savings and increased access to #generic and #biosimilar medicines. Join us in thanking all who have advocated for its passage. Learn more: http://bit.ly/PassedCREATESRelease
The Elijah E. Cummings Lower Drug Costs Now Act
The Lower Health Care Costs Act, under consideration in both the House and Senate, includes a provision (Section 407 — the BLOCKING Act) that would significantly harm the competition that lowers prescription drug prices for America’s patients and taxpayers. AAM CEO Chester “Chip” Davis, Jr. wrote to President Trump to urge him to oppose the BLOCKING Act.
WASHINGTON DC (December 10, 2019) – Today’s agreement reached by the Congressional Trade Working Group and the Trump administration represents a victory for patients.
The revised text creates greater opportunities for patients in Mexico, Canada and the United States to access less expensive medicines and promotes a competitive pharmaceutical market across the three countries. The improved pharmaceutical provisions create the balance between access to medicines and support for innovation that was included in bipartisan 2015 Trade Promotion Authority legislation.