Collins, McCaskill Release Committee Report of Bipartisan Drug Pricing Investigation Report includes findings from three hearings; review of more than one million pages of documents; and interviews with scores of patients, doctors,hospital administrators, consumer advocates, health...
BigNews.Biz - Dec 25,2016 - Collins, McCaskill Release Committee Report of Bipartisan Drug Pricing Investigation
Report includes findings from three hearings; review of more than one million pages of documents; and interviews with scores of patients, doctors, hospital administrators, consumer advocates, health experts, and pharmaceutical industry executives
WASHINGTON — U.S. Senators Susan Collins (R-Maine) and Claire McCaskill (D-Missouri), the Chairman and Ranking Member of the Senate Aging Committee, released a report on drug pricing titled, “Sudden Price Spikes in Off-Patent Prescription Drugs: The Monopoly Business Model that Harms Patients, Taxpayers, and the U.S. Health Care System.” The comprehensive report details the findings stemming from the Committee’s bipartisan investigation into abrupt and dramatic price increases for prescription drugs whose patents expired long ago. Through close examination of the monopoly business model used by four pharmaceutical companies to exploit market failures, the report examines how companies acquired decades-old, off-patent, and previously affordable drugs and then raised the prices suddenly and astronomically at the expense of patients. The report provides case studies of the four companies; explores the influence of investors; assesses the impacts of price hikes on patients, payers, providers, hospitals, and the government; and discusses potential policy responses.
“The skyrocketing prices of prescription drugs affect every American family, particularly our seniors,” said Chairman Collins. “This report is the culmination of the Senate Aging Committee's year-long, bipartisan investigation into the egregious price increases on a number of decades-old drugs acquired by pharmaceutical companies that act more like hedge funds. We must work to stop the bad actors who are driving up the prices of drugs that they did nothing to develop at the expense of patients just because, as one executive essentially said, “because I can.”
“The hedge fund model of drug pricing is predatory, and immoral for the patients and taxpayers who ultimately foot the bill—especially for generic drugs that can be made for pennies per dose,” Ranking Member McCaskill said. “We’ve got to find ways to increase competition for medicines and ensure that patients and their families aren’t being gouged.”
Chairman Collins and Ranking Member McCaskill launched the Aging Committee’s bipartisan investigation in November 2015 following a series of media reports detailing dramatic drug price increases after the acquisition of decades-old, off-patent, and previously affordable drugs. The investigation centered on Turing Pharmaceuticals, Retrophin, Inc., Valeant Pharmaceuticals International, Inc., and Rodelis Therapeutics. Evidence gathered by the Committee also suggests that additional companies have employed the monopoly business model uncovered in this report, putting the health and lives of Americans at risk.
The views of a wide-range of health policy experts and clinicians were considered, and the report identifies potential policy responses:
Enact the Increasing Competition in Pharmaceuticals Act, introduced by Chairman Collins and Ranking Member McCaskill, to incentivize competition to address regulatory uncertainty, small market size, and other factors that serve as limitations to generic entry;
Encourage generic competition by ensuring the right to obtain samples and simplifying Risk Evaluation and Mitigation Strategies;
Consider allowing highly targeted, temporary prescription drug importation to provide prompt price relief