Drugs in the US should be priced on a par with other wealthy countries

The pharmaceutical industry is lining up its allies to help in whatever ways they can to keep Congress from reining in drug prices. Specifically, they want to do their best to mislead the public about the value of benchmarking drug prices in the US to prices in other wealthy countries. International “reference pricing” is the smartest way to ensure that Americans pay fair prices,  prices in balance with what other wealthy countries pay, prices we would pay if it were legal to import drugs from abroad.

Back in 2019, the House of Representatives passed H.R.3, which calls for international reference pricing for up to 350 commonly used drugs over 10 years. Now, thankfully, House Speaker Nancy Pelosi wants to include similar legislation in President Biden’s infrastructure proposal. Tom Price, a former Congressman, former Secretary of the US Department of Health and Human Services and a drug industry ally, writes in the Hill about “unintended consequences.”

Tom Price misleads with his arguments. Innovation in our current system is not nearly as good as it could be. Big Pharma has focused far more on producing me-too profit-enhancing drugs that are variations on drugs already available than on meeting the needs of people with rare diseases and conditions. It has invested far more of its revenues on marketing than on research.

Innovation could improve substantially with international reference pricing legislation. H.R.3 would take much of the hundreds of billions in savings and put it towards drug research that adds value. Pharmaceutical companies spend very little of their budget on research.

Moreover, we import food and virtually every other good and service. Safety is always an issue, and we manage it. There are verified pharmacies around the world from which we could purchase drugs safely. Why shouldn’t we be able to import drugs or, at least, drug prices?

If Congress lifted its ban on drug importation, we would be paying drug prices similar to what people in other wealthy countries pay. That’s fair. More important, it would make drugs affordable for millions of Americans who cannot afford them today and do not fill medically necessary prescriptions. It’s also a market-based solution for lowering drug prices.

Now, the Congress has to act.

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• Risk to older adults of underuse of prescription drugs
• Prescription drug costs soar for people with Medicare Part D
• Don’t overlook marijuana-prescription drug interactions
• Avoid supplements, no matter how enticing they might be