New proposal to lower prescription drug costs
WASHINGTON (NEXSTAR) – The Biden administration plans to take on a new strategy to try and lower the price of prescription drugs.
Health and Human Services Secretary Xavier Becerra says the proposal would allow the federal government to open the door to cheaper generic drugs if major drug makers refuse to lower prices.
“It’s a fancy term called march in rights. When taxpayers have helped fund the invention of a particular medicine and therefore it’s on the market because taxpayers make it available, we have the right to march in and say this isn’t correct this is not fair to the American taxpayer,” Becerra said.
Becerra would not name any specific drugs or drug makers the administration plans to target.
Opponents are already pushing back.
A spokesperson with PhRMA which represents the country’s leading pharmaceutical companies argues the march in rule is being misused and will stifle the creation of future lifesaving drugs.
Statement attributable to Megan Van Etten, PhRMA spokesperson:
“This would be yet another loss for American patients who rely on public-private sector collaboration to advance new treatments and cures. The Administration is sending us back to a time when government research sat on a shelf, not benefitting anyone.”
Public Citizen, a consumer advocacy group, disagrees.
“This is potentially a very broad check on pharmaceutical monopoly power and price abuse,” Peter Maybarduk, the Public Citizen Access to Medicines Director said.
Maybarduk says he is concerned the framework does not go far enough to tackle the majority of high-priced drugs on the market.
“The framework that the administration has issued is somewhat narrower and indicates that it would only be used in an extreme circumstance,” said Maybarduk.
He says his organization will petition for a broader effort during the public comment session.
Once proposed, the rule must undergo a 60-day public review process, before the government can take action.
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