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The drug pricing provisions in the Build Back Better Act (BBBA) would allow the government to set the price of certain medicines in Medicare. This is a misguided approach that threatens future advances and won’t stop insurers from pocketing savings rather than lowering costs for patients.

Not only does the price setting plan Congress is considering fail to meaningfully address the challenges patients have affording their medicines, it makes a broken system worse by disincentivizing further research after a medicine is approved and discouraging development of generic and biosimilar medicines. We know from other countries that when governments resort to price-setting mechanisms, patients have access to fewer new medicines and wait longer to get the medicines they need. This is in large part because government price setting historically leads to a decrease in investment in research and development of new medicines and delayed access for those medicines that do get made. Europe, for example, used to lead the world in biopharmaceutical innovation but that changed after European governments implemented price-setting policies. For instance, nearly 90% of new medicines launched since 2011 are available in the United States compared to just 48% in France and 60% in the United Kingdom – countries that each use some form of government price setting.

Bottom line? Government price setting won’t make patients’ lives better. Why? Because even though health plans and pharmacy benefit managers (PBMs) negotiate rebates and discounts from biopharmaceutical companies, many patients with deductibles and coinsurance do not benefit directly from these savings and are instead charged cost sharing based on the full undiscounted prices of medicines. Government price setting fails to stop the health plans and the PBMs they work with from pocketing discounts on prescription medicines. And it’s not going to stop those same entities from shifting costs to patients.

We need to make insurance work like insurance again and ensure savings are shared with patients at the pharmacy, not pursue flawed policies that could put access to medicines at risk.

Tell Congress to focus on commonsense solutions that will help people access and afford their medicines.

Nicole Longo

Nicole Longo is Deputy Vice President of public affairs at PhRMA focusing on Medicare, 340B, importation and more. She previously worked for a D.C.-based public affairs firm where she assisted a wide range of clients with communications efforts on everything from trade policy to agriculture policy to health care policy. Outside the office, Nicole can be found trying new restaurants (usually Italian), taking an occasional barre class and cheering on the Cincinnati Bengals.

Nicole Longo

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New poll: 2 in 3 voters prefer a candidate committed to lowering health insurance premiums

September 18, 2026

What AARP isn’t telling seniors about MFN

August 24, 2026

Policymakers should improve patient access and reject price controls

August 18, 2026

CMS proposal could discourage patient-centered innovation

August 18, 2026

Insurers blame GLP-1s for rising costs. The data tells a different story.

August 14, 2026

The FTC’s PBM enforcement actions gave us a glimpse behind the curtain; it’s time to let the light in.

August 7, 2026

Nearly 1 in 4 patients initially denied access to IRA medicines

August 6, 2026

Voters continue to voice their concerns on government price controls

July 24, 2026

Medicare Part D at 20: Building on a strong foundation

July 23, 2026

Message to USAging: Providers are raising concerns about coverage barriers

July 22, 2026

New PBM principles don't change the fundamental challenge: Access to lower-cost medicines

July 10, 2026

340B’s reality: A booming business for hospitals, pharmacies and corporate giants

June 25, 2026

Guest Blog: Price controls won’t lower costs when insurers control access

June 25, 2026

Insurers are blaming medicines for premium hikes in Massachusetts. The state's own data suggests otherwise.

June 24, 2026

MFN could disrupt the affordable medicines patients depend on

June 18, 2026

New “America Cures” ad: U.S. patients get new medicines first

June 15, 2026

Patients speak out: MFN won't address my affordability concerns

June 4, 2026

MFN price controls threaten American jobs and the U.S. economy

May 28, 2026

Ahead of ASCO: Cancer innovation is promising, but policy choices matter

May 26, 2026

State price-setting boards create more questions than answers

May 20, 2026

New analysis highlights access to new medicines in the United States and abroad

May 13, 2026

MFN won’t lower costs when insurers call the shots

May 8, 2026

Guest Blog: How MFN price controls could decide my health care

April 30, 2026

Briefing: Capitol Hill panel on "Healthcare Denial Crisis in America"

April 24, 2026

MFN price controls would drain pensions and put retirements at risk 

April 23, 2026

Survey confirms too many insured Americans face barriers to reliable health care

April 22, 2026

States should avoid repeating the IRA’s price‑setting mistakes 

April 21, 2026

CMS undermines medical progress with MFN price controls 

April 16, 2026

Trump Administration’s efforts to have other countries pay their fair share are underway

April 15, 2026

70% DENIED: How insurance denials are delaying and preventing care for millions of Americans

April 14, 2026

CMS’ MFN proposals won’t help seniors despite lofty promises

April 9, 2026

Voters voice concerns on government price controls

April 7, 2026

Virginia should be cautious about importing federal price-setting mechanisms

April 1, 2026

Policymakers shouldn’t double down on the IRA’s flaws with MFN

March 30, 2026

Hospitals drive nearly 80% of the U.S. health spending gap

March 25, 2026

Insurers routinely block seniors’ access to medicines in Medicare Part D

March 18, 2026

MFN drug pricing risks reviving a harmful metric the U.S. rejected

March 16, 2026

Leadership in biopharmaceutical R&D provides U.S. patients the greatest access to innovative medicines

March 11, 2026

Harmful U.S. policies will help drive China’s global leadership in biopharmaceutical innovation

March 4, 2026

MFN undermines U.S. biopharmaceutical innovation

February 25, 2026

CMS puts patients and innovation at risk with MFN

February 24, 2026

No hassle, hidden markups or fees: AmericasMedicines.com

February 19, 2026

The Federal Trade Commission (FTC) takes important action to highlight and curb PBM abuses

February 17, 2026

Separating fact from fiction in the medicine supply chain

February 11, 2026

New list of selected drugs highlights growing consequences of government price setting

January 28, 2026

50-state poll says Americans are concerned that hospital markups hurt patients

January 27, 2026

Three things you should know from the insurer CEO congressional hearings

January 26, 2026

Price setting policies put cancer gains in jeopardy

January 16, 2026

Can’t get your medicine? Don’t count on your insurer.

January 15, 2026

Guest blog: Making the most of the Medicare Prescription Payment Plan

December 8, 2025

Myth vs. Fact: How government price setting impacts innovation

November 24, 2025

The IRA’s price setting doesn’t guarantee lower costs or better access

November 17, 2025

Stop, collaborate and re-evaluate: ICER’s pricing report

November 14, 2025

California’s landmark PBM crackdown: A wake-up call for reform

November 13, 2025

Middlemen mark up drug prices and keep discounts meant for you

November 10, 2025

PhRMA calls on USTR to ensure foreign nations pay their fair share

November 4, 2025

Putting patients first: Breaking down barriers to care

October 28, 2025

Direct purchase programs can lower costs for patients

October 20, 2025

What seniors can expect this open enrollment

October 14, 2025

Part D premiums are going up, while choices are going down

October 8, 2025

PBMs say they want lower priced medicines, so why don’t they cover them?

October 7, 2025

Historic biopharmaceutical investments: A prescription for America’s future

September 29, 2025

Why states struggle to deliver savings: Middlemen and 340B siphon dollars from patients and states

September 15, 2025

Delivering breakthroughs and lower costs for patients

September 8, 2025

PBMs are hiding hurdles to essential care

August 20, 2025

Celebrating 60 Years of Medicare

July 30, 2025

New study: PBMs and commercial insurers are quietly blocking prescription access

July 30, 2025

North Carolina puts patients first with rebate pass-through law

July 29, 2025

PBMs, not patents, are blocking access to lower-cost medicines

July 23, 2025

Medicare patients face higher drug costs, despite IRA promises

July 22, 2025

CMS continues to make a bad law worse

June 27, 2025

ICYMI: Forget Foreign Price Controls: There’s a better solution to lowering drug prices

June 26, 2025

Americans are paying a 26% freerider tax on medicines because other countries don’t pay their fair share

June 17, 2025

Medicare Part D plans initially denied medicines for more than 70% of patients in four chronic disease areas

June 16, 2025

New “Balance the Scales” campaign highlights why Americans pay more for prescription medicines

May 21, 2025

How the 340B hospital markup program and PBMs drive up costs for U.S. patients

May 16, 2025

Foreign first pricing schemes don’t address why Americans pay more

May 15, 2025

The AHIP premium dollar corrected (again)

May 8, 2025

PBMs launch new ad campaign to block reforms

May 5, 2025

New analysis: Fewer treatments and cures under the IRA’s pill penalty

May 1, 2025

When middlemen own it all, patients pay the price

April 10, 2025

How the IRA is impacting the generic drug market

April 8, 2025

3 myths critics get wrong about intellectual property

March 28, 2025

New report finds more abuse of 340B program by hospitals and drug middlemen

March 24, 2025

Three reasons Congress should fix the IRA’s pill penalty

March 24, 2025

A closer look at how health care consolidation drives up patient costs, creates barriers to care

March 17, 2025

Health care practitioners sound the alarm on middlemen-imposed barriers to patient care, need for policy change

March 13, 2025

Congress Keeps PBMs in the Hot Seat

March 6, 2025

Improved treatments continue to lead to declining cancer mortality rates in the U.S.

February 25, 2025

Biopharmaceutical innovation for a healthier America: PhRMA releases new innovation report

February 21, 2025

New policy agenda charts solutions for a healthier America

February 20, 2025

A successful PhRMA Forum highlights our commitment to a healthier America

February 20, 2025

CMS, don’t fall behind the rest of the medical community on obesity

February 14, 2025

Virginia, Don't Let Politicians Take Away Your Medicine

January 23, 2025

Patients are losing as government price setting continues

January 17, 2025

Wrapping up the J.P. Morgan Healthcare Conference

January 16, 2025

FTC finds PBMs make billions in profit from marking up cancer, other critical generic drugs

January 14, 2025

PhRMA CEOs Tee Up Next Week's Health Care Conference

January 11, 2025

New study: Entities that don’t make medicines get half of what is spent on those medicines

January 7, 2025

A new administration poses new opportunities for patient access

December 17, 2024

Post-approval R&D is critical for fighting cancer. The IRA makes it more difficult.

November 13, 2024

Three things to know about 340B contract pharmacies

November 12, 2024

The PBM industry's desperate attempt to stop reform

November 12, 2024

PhRMA launches new ad calling for Congress to make sure savings go to patients, not PBMs

November 11, 2024

Reimagining patient access through meaningful policy reform

November 5, 2024

CMS needs to do better

November 4, 2024

ICYMI: Grounding policy reforms in real lived patient experiences is key to improving outcomes

October 31, 2024

New PES survey: Out-of-pocket costs lead key health care priorities ahead of the November election

October 30, 2024

Guest Post: My health care vote

October 29, 2024

Insurers continue shifting more costs on to patients

October 28, 2024

Americans speak out on health insurance barriers and need for policy change, according to the latest Patient Experience Survey

October 28, 2024

ICYMI: The powerful companies driving local drugstores out of business

October 25, 2024

Is CMS paying attention to the growing access barriers for Medicare patients under the IRA?

October 18, 2024

7 reasons why states shouldn’t copy the IRA’s price setting mistake

October 15, 2024

Did the administration consider the importance of blood cancer medicines to patients in price setting process?

October 8, 2024

Hispanic Heritage Month: Fighting for Hispanic patients

October 7, 2024

Did the administration consider the importance of blood clot medicines to patients in the price setting process?

September 25, 2024

PBMs and insurers off the hook: Sen. Sanders’ selective hearing on drug costs

September 24, 2024

Three ways state drug price setting boards fail patients

September 18, 2024

The Inflation Reduction Act could increase costs and reduce access for millions of seniors

September 17, 2024

Are the IRA’s Part B inflation rebates lowering costs for Medicare patients? No.

September 16, 2024

Did the administration consider the importance of autoimmune disease medicines to patients in price setting process?

September 11, 2024

Key voter insights two months from Election Day

September 10, 2024

Patient priorities in the 2024 election

September 10, 2024

Did the administration consider the value of innovative diabetes medicines in price setting process?

August 28, 2024

New survey: Insurers confirm IRA will reduce patient treatment options

August 20, 2024

The unintended consequences of government price setting in Medicare Part D

August 16, 2024

Don’t put the government between patients and their medicines

August 7, 2024

Biosimilars continue to drive market competition and increase savings for seniors

August 6, 2024

What is the low-income subsidy program and how is it changing?

July 31, 2024

Voters across all 50 states want state policymakers to focus on health insurance and PBM practices

July 30, 2024

Case study: How seniors could face access disruptions because of the IRA’s price setting provisions

July 22, 2024

WTAS: Voters voice concerns about PBM abuses, call on policymakers to act

July 19, 2024

PhRMA launches new ad in campaign exposing ways middlemen drive up costs

July 17, 2024

FTC report confirms PBMs profit at the expense of patients

July 10, 2024

New 50-state poll Americans want to hold health insurers and PBMs accountable for high out-of-pocket costs and other practices

July 9, 2024

PhRMA reiterates concerns with IRA price setting program, urges CMS to mitigate harm

July 3, 2024

ICYMI: Hidden markups at mail-order pharmacies increase costs for employers

July 2, 2024

More than 60 researchers advocate on Capitol Hill

July 1, 2024

The IRA could lead to higher out-of-pocket costs for 3.5 million Medicare patients in 2026

June 25, 2024

ICYMI: What patients care about this election year

June 24, 2024

ICYMI: The Opaque Industry Secretly Inflating Prices for Prescription Drugs

June 21, 2024

ICYMI: Health care policy should be driven by patients, not politics

June 10, 2024

ICYMI: Misaligned policies undermine patient access

June 6, 2024

PhRMA Warns Federal Agencies: Consolidation and vertical integration among insurers, PBMs, and hospitals threaten patients

June 5, 2024

ICYMI: Innovation transforms lives but misguided federal policies threaten patient outcomes

May 30, 2024

How the IRA is more coercive than any European government price setting scheme

May 29, 2024

Mental Health Awareness Month: Supporting loved ones and improving mental health in America

May 28, 2024

How government price setting fails to address systemic health care inequities

May 24, 2024

Ongoing federal probes shed light on PBM and insurer practices

May 20, 2024

Government price-setting boards: Why Minnesota needs to take a better approach

May 9, 2024

WTAS: The consequences of consolidation and vertical integration

May 6, 2024

IRA is already negatively impacting access to medicines in Part D

April 25, 2024

Insurance data: PBM reform has no material impact on premiums

April 24, 2024

Government price setting won’t help patients in Illinois

April 22, 2024

ICYMI: Voter priorities this election season

April 18, 2024

New study finds insurers and PBMs increasing access restrictions in Medicare Part D

April 16, 2024

New analysis: Flawed assessments of a medicine’s value jeopardize patient access

April 11, 2024

3 Takeaways from POLITICO’s Health Care Summit

April 3, 2024

PBMs using 340B program to drive profits at patients’ expense

March 28, 2024

ICYMI: More evidence of the IRA’s harmful consequences on post-approval research and development

March 25, 2024

Colorado is proof: Too many unanswered questions remain about state government price setting's impact on patients and providers

March 14, 2024

Watch: A conversation with Dr. Mike Ybarra on Rare Disease Day

February 29, 2024

American Heart Month: A nurse’s perspective

February 27, 2024

The truth about Nebraska's price setting push

February 13, 2024

Four years later, Maryland board still hasn’t delivered for patients

February 12, 2024

Setting the Record Straight: Comparing U.S. drug prices to those in foreign countries hurts patients

February 7, 2024

As the administration continues to falsely claim Medicare “negotiation,” keep these points in mind

February 1, 2024

Powering the next generation of therapies: A conversation with Astellas US President Mark Reisenauer

January 30, 2024

When it comes to the future of innovation, the ball is in policymakers’ court

January 22, 2024

Biosimilars drive savings, but the IRA undermines their development

December 14, 2023

How the 340B program became a PBM giveaway

December 11, 2023

ICYMI: When middlemen get in the way, it’s the patients who lose

December 5, 2023

Get the facts on PCMA’s newest attempt to avoid accountability

December 4, 2023

New analysis of patient access restrictions in the United Kingdom

November 21, 2023

The IRA’s pill penalty threatens the future of oncology R&D

November 16, 2023

ICYMI: WSJ — Same Drug, Two Prices: Why the Higher Price Prevails

November 15, 2023

Don't close the door on rare disease research

November 13, 2023

ICYMI: 3 takeaways on the IRA’s unintended consequences from America’s Physician Groups’ 2023 annual fall conference

November 6, 2023

One year to Election Day: Four voter priorities to watch

November 6, 2023

ICYMI: Scott LaGanga and Matt Salo deliver a State of the Industry Report

October 25, 2023

New poll shows strong bipartisan support for PBM reform

October 20, 2023

R&D leaders to Biden Administration: Your policies are undermining the Cancer Moonshot

October 18, 2023

Three things economists are saying about the Inflation Reduction Act

October 11, 2023

4 truths about state government price setting

October 10, 2023

ICYMI: Government watchdog report finds patients in Medicare Part D paid billions more for medicines than insurers and PBMs

September 28, 2023

Word of the Month: AMR

September 27, 2023

IRA threatens seniors’ access to robust treatment options

September 26, 2023

Medicare Prescription Payment Plan will benefit patients if implemented correctly

September 21, 2023

New analysis shows PBMs use fees as a profit center

September 18, 2023

It’s PBMs, not patents, blocking competition 

September 14, 2023

Correcting the record: IRA’s government price setting provisions are unconstitutional

September 8, 2023

New PhRMA ad exposes yet another way PBMs get between patients and their medicines

September 5, 2023

IRA changes to Part D risk access to medicines

August 24, 2023

Three concerns about Colorado's approach to government price setting

August 23, 2023

With the first list of medicines out, let’s not forget why government price setting is bad policy

August 22, 2023

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