Politics Drug companies on verge of sinking longtime Democratic priority
British Columbia expands experimental prescriptions
The COVID-19 pandemic has reversed the progress made in parts of Canada to curb the number of deaths caused by drug overdoses.A fire medic holds a box containing naloxone hydrochloride which is carried in all their department's emergency response vehicles, in Akron, Ohio, Sept. 11, 2019.
The pharmaceutical industry is on the verge of defeating a major Democratic proposal that would allow the federal government to negotiate drug prices.
Speaker Nancy Pelosi (D-Calif.) can afford only three defections when the House votes on a sweeping $3.5 trillion spending package, but Reps. Scott Peters (D-Calif.), Kurt Schrader (D-Ore.) and Kathleen Rice (D-N.Y.) last week voted to block the drug-pricing bill from advancing out of the Energy and Commerce Committee. Rep. Stephanie Murphy (D-Fla.) voted against advancing the tax portion of the legislation in the Ways and Means Committee.
Business groups are fighting Biden's $3.5T budget over taxes, drug negotiations
Major business groups oppose raising corporate taxes to pay for the bill while some industries have come out against specific parts of proposal.Advocacy groups are drawing battle lines in opposition to parts of the bill aiming to raise taxes on corporations and wealthy individuals, lower prices on prescription drugs and combat climate change. The fights that could trim or threaten to kill the legislation will play out in the coming days and weeks as committees rush to meet a Wednesday deadline for drafting legislation.
All told, the number of House Democrats who have concerns about the drug pricing bill is in the double digits, and several Democrats in the 50-50 Senate would not vote for the measure in its current form, according to industry lobbyists.
The holdouts mark a sharp contrast to just two years ago, when every House Democrat voted for the same drug pricing bill, underscoring the inroads pharmaceutical manufacturers have made with the caucus on a measure that would narrow corporate profit margins.
"The House markups on health care demonstrate there are real concerns with Speaker Pelosi's extreme drug pricing plan and those concerns are shared by thoughtful lawmakers on both sides of the aisle," Pharmaceutical Research and Manufacturers of America (PhRMA), the industry's top trade group, said in a statement following the committee votes.
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The reversal follows the industry's multi-million dollar ad campaigns opposing the bill, timely political donations and an extensive lobbying effort stressing drugmakers' success in swiftly developing lifesaving COVID-19 vaccines.
The bill at the center of the fight, H.R. 3, would allow Medicare to negotiate the price of prescription drugs by tying them to the lower prices paid by other high-income countries. The measure is projected to free up around $700 billion through the money it saves on drug purchases - covering a big chunk of the Democrats' $3.5 trillion spending plan.
Drugmakers say the measure would reduce innovation, pointing to a Congressional Budget Office estimate that found it would lead to nearly 60 fewer new drugs over the next three decades.
Peters and other Democrats have proposed an alternative bill that would limit price negotiation to a fraction of the prescription drugs included in H.R. 3, focusing instead on drugs like insulin, the diabetes treatment that has over the last decade. The alternative measure also would set a yearly out-of-pocket spending limit for lower-income Medicare recipients.
Moderate House Democrats threaten drug pricing bill in House panel
Three moderate House Democrats announced that they would vote against their party's legislation to lower drug prices in committee on Tuesday, threatening a defeat for one of Democrats' signature measures. Reps. Kurt Schrader (D-Ore.), Scott Peters (D-Calif.) and Kathleen Rice (D-N.Y.) announced in separate statements on Tuesday that they would vote against the section of Democrats' $3.5 trillion package dealing with lowering drug prices during a markup in the House Energy and Commerce Committee, which is currently ongoing.
The proposal foreshadows a less aggressive drug pricing compromise that uneasy Senate Democrats are more likely to get behind.
"You're going to see something pass, but it probably won't be H.R. 3," said a lobbyist who represents pharmaceutical companies.
Pharmaceutical manufacturers oppose any efforts to control the price of prescription drugs, but the alternative bill is more favorable to the industry than the broader Democratic bill.
"Any kind of artificial price controls will have an impact on both new scientific investment as well as access to medicines," said Rich Masters, chief public affairs and advocacy officer at the Biotechnology Innovation Organization, a trade group that represents pharmaceutical giants such as Sanofi, Merck and Johnson & Johnson.
"We appreciate the focus on patient out of pocket costs, which we know is a critical component to any reform efforts and something that BIO and our member companies have long supported," he added.
Progressive lawmakers, who have long bemoaned rising drug prices, blasted the three House Democrats who voted to block H.R. 3, saying they succumbed to industry donations and lobbying efforts.
Overnight Health Care — Democrats face setback on drug pricing
Welcome to Wednesday's Overnight Health Care, where we're following the latest moves on policy and news affecting your health. Subscribe here: thehill.com/newsletter-signup.It's been over a week, and the zebras running loose in Maryland-which were definitely not freed by Eleanor Holmes Norton- are still out there. Be safe! Three Democrats in the House voted against a drug pricing amendment, throwing the party's signature plan to lower the cost of prescription drugs into question. For The Hill, we're Peter Sullivan (firstname.lastname@example.org), Nathaniel Weixel (email@example.com) and Justine Coleman (firstname.lastname@example.org).
"What the pharmaceutical industry has done, year after year, is pour huge amounts of money into lobbying and campaign contributions ... the result is that they can raise their prices to any level they want," Sen. Bernie Sanders (I-Vt.) said in a Friday.
The pharmaceutical industry spent on lobbying through the first half of the year, more than any other industry, to deploy nearly 1,500 lobbyists, according to money-in-politics watchdog OpenSecrets. That's up from around $160 million at the same point last year, when the industry broke its own lobbying spending record.
Peters announced his opposition to Pelosi's drug pricing proposal in May and shortly after was from pharmaceutical industry executives and lobbyists, STAT News reported.
Peters is the No. 1 House recipient of pharmaceutical industry donations this year, bringing in $88,550 from pharmaceutical executives and PACs, according to OpenSecrets. Over his congressional career, Peters has received in excess of $860,000 from drugmakers, more than any other private industry.
The California Democrat last week that accusations of his vote being guided by donations are "flat wrong" and noted that his San Diego congressional district employs roughly 27,000 pharmaceutical industry workers consisting mostly of researchers.
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"It's always going to be the attack because it's simple and it's easier than engaging on the merits," he said.
Schrader received nearly $615,000 from the industry. He inherited a fortune from his grandfather, a former top executive at Pfizer, and had between $50,000 and $100,000 invested in Pfizer, in addition to other pharmaceutical holdings as of last year, according to his most recent .
Schrader last week that he is "committed to lowering prescription drug costs," while arguing that the House bill would not pass the Senate in its current form.
Rep. Lou Correa (D-Calif.) another supporter of Peters's more industry friendly bill, received an influx of pharmaceutical donations in recent months, including a $2,000 check from Pfizer's PAC in mid-August, according to Federal Election Commission filings.
In meetings with lawmakers, lobbyists have argued that now is not the time to go after drugmakers, which developed highly effective COVID-19 vaccines and are developing booster shots and other treatments to fight the virus.
The U.S. Chamber of Commerce, which represents several major pharmaceutical manufacturers, said last month that Democratic drug pricing efforts will leave the U.S. "unprepared for the next public health crisis."
PhRMA last week launched a to oppose H.R. 3. That's after pharmaceutical groups and conservative organizations bankrolled by drugmakers spent $18 million on ads attacking the proposal through late August, according to an analysis from Patients for Affordable Drugs, a group that backing H.R. 3 last week.
The ad buys are meant to sway both lawmakers and the general public. A June found that 90 percent of Americans approve of the drug pricing measure, but that support dropped to 32 percent when they were told that the proposal "could lead to less research and development of new drugs."
An Alzheimer's drug appears promising, but Medicare should wait to cover it .
Medicare should prioritize payment for evidence-based care coordination interventions that more immediately aid dementia sufferers and their caregivers. Medicare is the largest health care insurer of those over age 65. Currently, nearly one in five Medicare dollars is spent for patients with Alzheimer's and this is expected to increase to one in three dollars by 2050. These cost projections were made before aducanumab's approval; by itself, the drug could cost Medicare $29 billion in one year alone.