Washington, D.C. — Today, the Center for American Progress released a new report outlining what executive actions a future administration can take to lower drug prices, encourage innovation, and rein in drug spending. The report focuses on three primary areas, including addressing the drug industry’s monopoly power, lowering the prices Medicare pays for prescription drugs, and how the U.S. Department of Health and Human Services can encourage innovation and promote lower drug spending under the 21st Century Cures Act and the Affordable Care Act (ACA). Among others, key ideas highlighted in the piece include:
- Utilize march-in rights to license drug company patents that result from federally funded research, particularly in cases where drugmakers are charging unreasonable prices or the drug price harms public health.
- Issue drug manufacturers licenses for patented technology to increase drug production capacity and lower prices.
- Exercise the authority of the Center for Medicare and Medicaid Innovation (CMMI) made possible by the ACA to lower drug prices and spending, including adopting a flat fee reimbursement for Medicare Part B and utilizing reference pricing for Medicare Part D drugs.
- Expand the federal government’s drug research workforce under the 21st Century Cures Act, bolstering the innovation of new drugs.
“The next president should use these authorities to combat drug manufacturers’ monopoly power and acknowledge the vital role taxpayers have played in spurring innovation in pharmaceuticals. These steps are critical for lowering costs for consumers, particularly seniors and people with chronic conditions, but they’re also vital to ensuring that the United States can curb the COVID-19 pandemic by increasing access to lifesaving therapeutics,” said Maura Calsyn, managing director of Health Policy at CAP.
Please click here to read “How the Next Administration Can Lower Drug Prices” by Maura Calsyn and Thomas Waldrop.
For more information on this topic or to speak with an expert, please contact Colin Seeberger at gro.ssergorpnacirema@regrebeesc or 202-741-6292.