BAKER EYES DRUG COST CURBS
Gov. Charlie Baker is making another push for a proposal that would rein in rising prescription drug costs and provide predictability for consumers by penalizing drug makers whose prices increase too much.
“I think far too often there are very significant increases in the price of critical drugs that ultimately harm patients that rely on these treatments,” Baker said in a Tuesday virtual press briefing with Connecticut Governor Ned Lamont, who is pursuing a similar policy in his state.
The budget that Baker filed in January includes an outside section that would impose a penalty on drug manufacturers whose prices increase by more than the consumer price index plus two percent.
The penalties imposed have been estimated to raise about $70 million, money that would support community health centers and community hospitals.
The plan was first unveiled in January 2019, and has since been opposed by drug industry giants.
“Allowing the government to arbitrarily set prices on life-saving medicines could slow innovation and make it harder for patients to get the medicines they need,” said Priscilla VanderVeer, vice president of public affairs at PhRMA in a statement.
A statement from Pfizer, which employs 1,000 people in Massachusetts, reads in part, “We oppose this legislation based on the negative impact it could have on expanding access to medicines.”
Zachary Stanley, executive vice president of the Massachusetts Biotechnology Council said it’s “astonishing” Baker is again touting his “tired proposal.”
“In practice, this policy would do nothing to reduce costs for patients but would inhibit the biopharmaceutical industry’s ability to develop innovative, lifechanging treatments and cures – like the COVID-19 vaccines,” Stanley said.
However, patients being crushed by ever-rising drug costs support Baker’s proposal.
“Like so many others, I live at the mercy of drug corporations,” said Karolina Chorvath, of Boston, who has Crohn’s disease.
She said during the press conference, “I already have to deal with the excruciating pain and uncertainty of living with multiple chronic conditions … no one else should have to face unaffordable drugs that we need to live.”
Jay Gironimi, of Groton, Conn., who has cystic fibrosis, said he’s maxed out his credit card trying to pay for medication.
“I shouldn’t be forced to decide between financial ruin and detrimental health outcomes. It’s why we need reforms now,” Gironimi said.
The House is expected to release its own budget plan next week and debate the bill later this month. If the House does not include Baker’s proposal, the administration could lean on the Senate to include it in the budget.