Brown Visits Cleveland to Outline Bipartisan Effort to Lower Costs of Life-Saving Drugs
Bill Would Increase Competition and Improve Access to Biologics, Save Billions in Drug Costs Proposal Would Save Taxpayers Billions of Dollars Over the Next 10 Years
(L-R: Sen. Sherrod Brown, Shawn Osborne)
CLEVELAND, OH – U.S. Sen. Sherrod Brown (D-OH) outlined a new bipartisan effort to help lower prices of life-saving drugs used to treat diseases like cancer and arthritis. During a visit to the Bolwell Pharmacy at University Hospitals Cleveland Medical Center today, Brown discussed how his proposal would help make drugs more affordable and save taxpayers billions of dollars.
“Ohioans facing serious and chronic illnesses like diabetes, arthritis, and cancer should not have to worry that the cost of drugs will bankrupt them or keep them from getting the treatment they need,” said Brown. “This legislation would save taxpayers billions, and bring more affordable drugs onto the market.”
Brown was joined by Shawn Osborne, Vice President of Pharmacy at the University Hospitals Cleveland Medical Center.
“The rising prices of prescription medication have been an increasing burden to our patients and the entire health care community. We are pleased to see this legislation aimed at combatting these high prices for life-saving drugs and making them more affordable for people who rely on them every day,” said Osborne.
In the same way that generics entering the market helped increase competition and boost access to more affordable prescription drugs, Brown’s bill would make clinically safe and effective versions of biologics called “biosimilars” available, providing additional competition in the marketplace and making life-saving drugs more affordable for consumers.
Biologics – drugs made using living organisms – currently have the longest exclusivity period of any approved pharmaceutical, which has a chilling effect on innovation, limits competition, and prevents the development and marketability of biosimilars. Allowing more biosimilars to enter the market will save patients, taxpayers, and hospitals money. Brown’s bill would reduce the exclusivity period for biologics to ensure that more of these drugs can be developed and made available to consumers faster.
Currently, many biologics cost $100,000 or more. High prices, which are often a result of a lack of competition in the market, are unreasonable for patients, insurance companies, and taxpayers. The Price Relief, Innovation and Competition for Essential Drugs (PRICED) Act would reduce exclusivity for biologics in the United States from 12 years to seven years. This will lead to the development of more medicines – including biosimilars – and help more of these life-saving drugs enter the marketplace.
According to the Department of Health and Human Services’ 2017 Budget request, reducing exclusivity for biologics from 12 to seven years would save the federal government and taxpayers $6.9 billion over the next 10 years. In addition, several studies estimate the projected savings from the approval of biosimilars for current high-cost biologics to be anywhere from $44 billion to $250 billion over ten years.
The bill has been endorsed by AARP, Center for Medicare Advocacy, Alliance for Retired Americans, AFL-CIO, UNITE HERE, International Union – UAW, Medicare Rights Center, American Federation of Teachers, the International Association of Machinists and Aerospace Workers, the National Committee to Preserve Social Security and Medicare, Families USA, AFSCME, Public Citizen, Pharmaceutical Care Management Association (PCMA), Consumer’s Union, National Community Pharmacists Association, National Association of Chain Drug Stores, CVS Health, and the GPHA.
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