Despite Democrats’ claim that their Manchin-Biden Build Back Better bill will lower costs for families, the Congressional Budget Office confirmed that it will actually raise the prices of new drugs.
Worse yet, the bill would destroy American innovation in life-saving cures and treatments for patients.
Higher launch prices for prescription drugs will increase costs at the pharmacy counter and raise insurance premiums:
- These increased prices will push new cures out of reach for most American patients except the wealthiest.
- Democrats’ price control plan will limit cures to only the wealthiest of Americans.
- “Price controls on prescription drugs, meanwhile, would also reduce quality of care by reducing the number of better new treatments coming to market. If manufacturers refuse to accept the government’s dictated prices, they’d face punitive financial penalties.” – University of Chicago Professor Tomas J. Philipson
Studies show these drug price controls kill innovation:
- Price controls eliminate incentives to innovate: Twelve firms studied had invested more than $400 billion in the U.S. pipeline to produce cures and treatments that represent a substantial portion of each firm’s revenue. Half of the companies researched in the study saw a reduction of their net earnings down to a third of what they earned previously, and the average reductions across the entire group were roughly over half what they earned previously.
- Kneecapping American leadership in innovation: The firms studied represent more than half of all global innovative investment.
- Sending American jobs overseas: Democrats’ takeover of this industry will ship investment to China and other competitors overseas. Further, the study estimates the proposed legislation will also likely lead to the loss of over 590,000 U.S. biopharma jobs.
Democrats’ price-fixing scheme would kill hundreds of cures:
- Democrats’ price-fixing scheme would kill up to 342 cures, according to a study by the University of Chicago, yet they claim it’s merely a “negotiating” approach that would lower the price of drugs. Now, a Vital Transformation study finds that if drug price controls under consideration in the Senate had been enacted during the last decade, only six of 110 currently approved therapies would have made it to patients.
- 104 treatments we have today would not have come to fruition under the Democrats’ cures-killing policies. Those cures touch a wide variety of diseases—cancer, depression, hypertension, and rheumatoid arthritis, to name a few—affecting hundreds of millions of Americans.
- Loss of innovation = a death sentence for patients. Looking at CMS drug utilization data from 2016 to 2020 of the types of drugs expected to be most impacted by Democrats’ price fixing, even the most conservative estimates of innovation lost from these policies could have left over 42 million patients without the medicine they needed.