Proposal to Congress for Fairly Reducing Prescription Drug Prices

Background:

Prescription drug prices in the United States are among the highest in the world, creating a significant financial burden for patients and the healthcare system. It is crucial to address this issue by implementing common-sense solutions that promote transparency, competition, and affordability in the prescription drug market. This proposal urges Congress to consider the following recommendations:

1. Enhance Transparency:

Require drug manufacturers, pharmacy benefit managers (PBMs), and insurers to disclose detailed information about the pricing and negotiation processes, including research and development costs, production costs, marketing expenses, and rebate agreements. This transparency will enable better oversight and facilitate more informed decision-making by patients, providers, and policymakers.

1. Promote Competition:

To increase competition in the prescription drug market, Congress should:

• Streamline the approval process for generic drugs and biosimilars to increase availability and drive down prices.

• Implement policies that prevent drug manufacturers from engaging in anti-competitive practices, such as pay-for-delay agreements.

• Explore the possibility of allowing the importation of prescription drugs from Canada and other countries with similar safety standards.

1. Cap Out-of-Pocket Expenses:

To protect patients from excessive out-of-pocket expenses, Congress should:

• Establish an annual cap on prescription drug costs for Medicare beneficiaries.

• Encourage insurance plans to provide more comprehensive drug coverage, including annual limits on patient cost-sharing.

• Create a safety net program for uninsured or underinsured patients who require expensive medications.

1. Empower Government Negotiations:

Leverage the purchasing power of government programs to negotiate lower drug prices:

• Allow Medicare to negotiate prescription drug prices directly with manufacturers.

• Expand the use of value-based pricing models, which link drug costs to their effectiveness and health outcomes.

1. Encourage Innovation:

Balance the need for affordability with continued incentives for innovation:

• Promote research and development for priority areas, such as rare diseases and novel treatments.

• Provide tax credits or grants for drug manufacturers that invest in innovative research.

By implementing these common-sense solutions, Congress can work towards reducing prescription drug prices fairly and effectively, ensuring that all Americans have access to affordable and life-saving medications. We urge lawmakers to prioritize this issue and collaborate across party lines to create a more transparent, competitive, and patient-centered prescription drug market.

Sincerely,

Jay Bowman