Statement by Healthcare Leadership Council President Mary R. Grealy on Reported Agreement on Drug Pricing Legislation
The reported congressional agreement on changes to Medicare’s drug pricing structure creates a disturbing precedent that will do little to benefit patients but will discourage the capital investment that leads to breakthrough treatments and therapies.
The word “negotiation” is used to describe this extreme change to the drug pricing structure, but it is a misnomer. When government can use its power to establish arbitrary price ceilings and severe penalties for those that don’t comply, this is not a negotiation in the truest sense of the word but rather government-applied price controls. It is a step that sends warning signals that will affect resources available for research and development.
The Medicare Part D prescription drug program has consistently achieved approval ratings of near 90 percent among the seniors enrolled in Part D plans. Polling has shown that seniors consider the program affordable and a good value. Average premiums have stayed at an affordable level for several years. This drug pricing proposal is a political solution that is not demanded by those who would ostensibly benefit from it. The potential consequences from this move far outweigh the theoretical gains.
For Immediate Release
November 3, 2021
Contact: Kelly Fernandez 202-449-3452