Improve and Pass H.R. 3: Public Citizen

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Public Citizen says H.R. 3, the House Democratic leadership’s bill to lower prescription drug prices, should be improved and then passed. In a statement responding to a Bloomberg News publication of a leaked version of the bill, the advocacy group says it is an “ambitious plan” that “if adopted should generate major savings for the U.S. government and help many, perhaps millions, of people get medicine they need but cannot now afford.”

Noting that Democratic staffers have said the leaked summary is an outdated draft and that the specific content is still being negotiated, Public Citizen says that compared to earlier reports, the leaked summary envisions the U.S. government taking greater responsibility for getting a better deal on medicine prices. “It casts out arbitration in favor of direct government negotiations,” it says. “It imposes tough penalties when obstinate drugmakers won’t play ball. And it means to achieve better prices not only for Medicare, but for all payers.”

The group also says there are important limits on the leaked plan’s capacity to make medicine affordable. “The plan as articulated does not restrain how much we pay for newly launched drugs, and patients who use expensive medicines that do not qualify for negotiation may still be at the mercy of pharma’s price gouging,” the statement says. “The plan may rely too heavily on prices abroad, which derive from monopolies just as they do here, rather than providing a fresh opportunity to establish fair prices related to real research investments and priorities. We hope these issues can be remedied in committee, in part by incorporating the power of generic competition when drugmakers refuse to agree to a reasonable price.”

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