WASHINGTON, D.C. – U.S. Senator Tammy Baldwin today will highlight her bipartisan FAIR Drug Pricing Act at this morning’s Senate Health Committee hearing on the soaring price of prescription drugs. The FAIR Drug Pricing Act, introduced by Senators Tammy Baldwin and John McCain (R-AZ) in May, takes the first step in addressing skyrocketing prescription drug prices by requiring transparency for pharmaceutical corporations that plan to increase drug prices.
“Drug corporations have too much power and influence in Washington and we must do more to take on sky-high prescription drug prices,” said Senator Baldwin. “Our bipartisan reform will crack down on drug corporations that increase prescription drug prices by requiring basic transparency and accountability. As costs rise for lifesaving treatments, American families need some relief and we have a bipartisan solution that we should act on.”
The Fair Accountability and Innovative Research (FAIR) Drug Pricing Act would require drug manufacturers to disclose and provide more information about planned drug price increases, including research and development costs. Increased transparency will help provide much-needed context for taxpayers, consumers and policymakers about the costs and value of medications, and may also incentivize companies to reassess the long-standing practice of relentless drug price increases.
Specifically, the FAIR Drug Pricing Act would require drug manufacturers to notify the U.S. Department of Health and Human Services (HHS) and submit a transparency and justification report 30 days before they increase the price of certain drugs that cost at least $100 by more than 10 percent in one year or 25 percent over three years. The report will require manufacturers to provide a justification for each price increase, manufacturing, research and development costs for the qualifying drug, net profits attributable to the qualifying drug, marketing and advertising spending on the qualifying drug, and other information as deemed appropriate. The bill will not prohibit manufacturers from increasing prices, but it will, for the first time, give taxpayers notice of price increases and bring basic transparency to the market for prescription drugs.
The FAIR Drug Pricing Act is supported by AARP, Campaign for Sustainable Rx Pricing (CSRxP), Alliance of Community Health Plans (ACHP), National Multiple Sclerosis Society, AFL-CIO, 340B Health, The Medicare Rights Center, Families USA, Public Citizen, Kaiser Permanente, Marshfield Clinic Health System, and Security Health Plan.
A livestream of today’s hearing is available here.
Text of the legislation is available here.