WASHINGTON, D.C. (August 29, 2023) – Today, the Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Stephen J. Ubl released the following statement in response to the Centers for Medicare & Medicaid Services (CMS) releasing the first list of medicines in Medicare to be subject to government price setting:
“Today’s announcement is the result of a rushed process focused on short-term political gain rather than what is best for patients. Many of the medicines selected for price setting already have significant rebates and discounts due to the robust private market negotiation that occurs in the Part D program today. Giving a single government agency the power to arbitrarily set the price of medicines with little accountability, oversight or input from patients and their doctors will have significant negative consequences long after this administration is gone. And insurance companies and their PBMs may further restrict access to medicines through increased utilization management, higher copays and more restrictive formularies.
“Politics should not dictate which treatments and cures are worth developing and who should get access to them. The cancer moonshot will not succeed if this administration continues to dismantle the innovation rocket we need to get there. The harm will spread beyond cancer and impact people with rare diseases, mental health illnesses and other terrible diseases.
“American patients deserve better. We will continue to fight for solutions that lower costs for patients at the pharmacy counter, address abusive practices by insurers and PBMs and mitigate the harm this law may have for future generations.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier and more productive lives. Over the last decade, PhRMA member companies have more than doubled their annual investment in the search for new treatments and cures, including nearly $101 billion in 2022 alone.