The latest news is that the pharmaceutical industry is targeting its 2020 campaign contributions at Vice President Biden, rather than President Trump. Kaiser Health News reports a reversal in Pharma’s standard way of operating. The prescription drug companies want to make sure that a Biden presidency would not mean government regulation of drug prices. What would a President Biden do about drug prices?
The US House of Representatives has passed HR3, which would lower drug prices for scores of the most popular drugs to levels near those paid in other wealthy countries over the next ten years. Pharma would have to negotiate with the Department of Health and Human Services regarding prices for these drugs. Everyone in the country would benefit. But, the Senate has not considered it.
Vice-President Biden says he plans to eliminate the barrier that prevents Medicare from using its leverage to negotiate drug prices. While Biden recognizes that everyone in the US needs lower drug prices, his campaign web site does not say that everyone in the nation will benefit from these prices, nor is it clear that these prices will be significantly lower, since he does not say that they will be benchmarked to prices paid in other countries.
Biden proposes establishing a new arm of the US Department of Health and Human Services to assess the value of new specialty drugs. This agency would establish a fair price for these drugs. They would base the price on international pricing, if the drug is already available in other countries. Vice President Biden also proposes allowing private health insurers in the state exchanges, and the individual market writ large, to benefit from the prescription drug prices established at HHS.
In addition, the Vice President would impose a limit on the amount pharmaceutical companies can increase the price of their brand-name and biotech drugs to the rate of inflation. This limit would also apply to “abusively priced” generics. The Vice President does not define abusively priced.
And, the Vice President would allow drug importation from other countries where drugs are determined to be safe. PharmacyChecker’s website lists drug prices from verified pharmacies in other countries. While this proposal would not help as many people as need affordable drugs, it forces Pharma to recognize that the international market will drive down drug prices in this country. Better still would be if private health insurers were required to reimburse members for drugs they purchase abroad.
Finally, Biden proposes improving the supply of generic drugs and eliminating the tax deductions pharmaceutical companies traditionally receive on their advertising spending.
It’s no wonder that Pharma and its allies in the health products industry have given Biden’s campaign more than $5.9 million, according to Open Secrets. Kaiser Health News reports that the Biden campaign has received three times more in campaign contributions from Pharma and its allies than President Trump. If Biden becomes President, the drug companies will need his ear to keep him and Congress from turning his drug pricing proposals into law.
Still, Pharma is targeting the majority of its Congressional campaign contributions to Republicans. Its how it tries to ensure that Republicans in Congress stand behind the drug companies’ right to charge excessive prices.
It’s too early to know whether Biden, if elected, would prioritize lowering prescription drug prices. He should. Drug prices remain one of the top issues among voters. Nine in ten voters say this issue is “very important” or “somewhat important.”
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