Baldwin backs bills aiming to boost drug competition, lower costs

U.S. Sen. Tammy Baldwin, D-Wis., backed two pieces of legislation intended to reduce drug costs earlier this month.

One bill would penalize companies increasing prescription drug costs faster than the rate of inflation. An Inflation Reduction Act provision required companies to pay rebates to Medicare if price hikes exceeded inflation. Under the bill, units of drugs sold to those with private insurance would factor into that rebate calculation.

Another bill would provide greater oversight to the Food and Drug Administration’s citizen petitions, which companies may leverage to slow the approval process for competitors. The bill aims to reduce these instances by allowing the FDA to reject petitions that intend to limit competition in the drug market.

“We cannot continue to allow big drug companies to get away with jacking up prescription drug prices while Wisconsinites are being forced to forgo their life-saving medications because they simply cannot afford it,” Baldwin said in a statement.

The FDA does not comment on proposed legislation, its representatives said.

“The agency remains committed to ensuring high-quality, affordable generic drugs are available to the American public,” they said in a statement. Its Drug Competition Action Plan strives to address “the so-called ‘gaming’ that frustrates and delays generic drug approvals,” according to its website.

Sarah Ryan, spokesperson for the Pharmaceutical Research and Manufacturers of America, expressed concerns over whether the bills address “middlemen” — like pharmacy benefit managers — who handle rebate distribution.

“We need reforms that will hold these middlemen accountable,” said Ryan.

While Ryan also said they’re open to collaborating with legislators, the citizen petition process “is critical to promote the transparent exchange of information and ideas about scientific, legal and regulatory matters.”

– Elizabeth Casolo for Wisconsin Health News