In an opinion piece on addressing high prescription drug prices for The Hill, Gabriel Levitt and Steven Salant argue that Congress should allow drug imports from legitimate pharmacies around the world and cap drug prices at the lowest price paid by other wealthy countries.
Today, all but 1.5 percent of Americans fill their prescriptions in the United States. Most people are worried about the safety of drugs imported. But, many of the same exact drugs sold in the US are available around the world; in the US, you pay 3.5 times more for them. Not surprisingly, three in ten Americans cannot afford to fill their prescriptions.
A large majority of Americans of all political stripes–more than 75 percent–favor drug importation and Medicare drug price negotiation. The authors propose combining policies proposed by Republicans and Democrats to achieve lower drug prices.
The authors explain why importing drugs from certified licensed pharmacies abroad is as safe as buying the drugs in the US. But, the pharmaceutical industry does a good job of scaring people from importing drugs. Consequently, only about 2.3 million Americans import drugs. And, while drug importation is not legal, the FDA has never prosecuted people who import drugs for personal use.
In 2019, the House of Representatives passed HR3, which would have set Medicare prices for 350 drugs over 10 years at a price benchmarked to the average of what other wealthy countries pay, international reference pricing. The Senate did not entertain the bill, and it went nowhere. The bill was a good first step at regulating drug prices, but it covered fewer than five percent of drugs on the market, did not apply to people without insurance, and left it to insurers to decide whether they wanted to piggyback on Medicare rates.
Levitt and Salant propose that Medicare link its drug prices to the lowest prices paid by other high-income countries. They also recommend that a Medicare reference pricing bill must specify that if the drug manufacturer does not agree to the reference price, either its drug cannot be included on the Medicare Part D formulary or the manufacturer loses its patent protection and other companies can manufacture the drug at the reference price.
Savings from reference pricing could be used to fund more drug research. We should not be funding research from the exorbitant prices people who rely on drugs are now forced to pay.
Here’s more from Just Care:
- Millions safely import low-cost drugs from abroad
- Pelosi drug proposal would bring down drug prices
- Prescription drug costs soar for people with Medicare Part D
- Coronavirus: Taking supplements poses risks
- Coronavirus: Planning ahead for a medical emergency
