Booker Reintroduces Bill to Establish National Drug Pricing Agency to Lower Costs, Increase Access

WASHINGTON, D.C. - Today, U.S. Senator U.S. Senator Cory Booker (D-NJ) reintroduced the Prescription Drug Affordability and Access Act, legislation to systematically change the way prescription drugs are priced in order to reduce drug costs for Americans and increase access to the medications they need. Senator Bernie Sanders (I-VT) joined him as an original cosponsor.

The bill would create an independent agency-the Bureau of Prescription Drug Affordability and Access-tasked with conducting reviews of drug prices and determining an appropriate list price. If companies don't comply with the Bureau-reviewed list price, the Secretary of Health and Human Services (HHS) would allow other entities to produce the drug, thereby voiding the companies' government-granted exclusivity and ensuring patients have access to the drug at a lower and more reasonable price determined by the Bureau.

This is one of the few bills to tackle the challenge of rising prescription drug prices by addressing the list price of drugs. The list price of a drug, also thought of as "sticker price", is incredibly important to those who are uninsured or underinsured and may have to pay the full cost of the drug. Even patients with good insurance may pay a price tied to a percentage of the list price.

"In the wealthiest nation on earth, no one should have to choose between their medications and putting food on the table," said Senator Booker. "This legislation aims to put an end to the outrageous price gouging by pharmaceutical companies and bring much-needed relief to the millions of Americans struggling to afford their prescriptions. Establishing a federal bureau of prescription drug affordability and access will help ensure fair pricing and increase transparency into drug pricing. It's time to put patients before profits."

"The American people understand that the outrageously high cost of prescription drugs is a crisis situation that must be addressed," said Senator Sanders. "Today, one in four Americans cannot afford the medicine that they are prescribed. The status quo is simply not working. It is long due time we take on the greed of the pharmaceutical industry and work to substantially lower the prices they charge."

The Prescription Drug Affordability and Access Act specifics when a drug manufacturer is preparing to bring a new drug to market, it would be required to submit detailed transparency information to the Bureau 45 days before, including:

• the cost of research and development
• the cost of the drug and of comparable drugs in other countries
• the federal investments that contributed to the discovery and production of the drug

The Bureau would review that information and other factors to determine an appropriate list price. If a drug manufacturer fails to adhere to the appropriate list price, the Secretary of HHS would allow other companies to produce a generic version of the drug at a cheaper price, voiding the company's government granted exclusivity.

The Prescription Drug Affordability and Access Act is endorsed by the following organizations: Public Citizen, New Jersey Citizen Action

"The Prescription Drug Affordability and Access Act recognizes that Big Pharma charges far too much for vital medicines - and will continue to do so, until We the People make them stop. It recognizes that Big Pharma's power comes from the grant of patent and other monopolies - and that We the People have the power to end those monopolies if drug corporations refuse to price their products reasonably. Public Citizen is proud to offer its strong endorsement of this legislation," said Robert Weissman, President of Public Citizen

"Drugs don't work if people can't afford them," said Laura Waddell, Health Care Program Director for New Jersey Citizen Action. "We applaud Senator Booker for his longtime work championing health care affordability and access for the benefit of patients throughout our nation and state. Today, we stand with him in support of the re-introduction of the Prescription Drug and Affordability and Access Act which will establish the Bureau of Prescription Drug Affordability and Access focused on reducing prescription drug costs for patients and ensuring access to lifesaving medications. The Bureau will provide the necessary oversight, patient and public engagement, and enforcement and accountability measures to make a meaningful difference in prescription drug affordability. This legislation is important to the 57% of New Jerseyans struggling with health care affordability and the 1 in 4 New Jersey adults who report not filling a prescription, cutting, or skipping doses due to cost. The efforts of the Bureau at the federal level will be the perfect complement to enacted reforms in states like New Jersey, that have established Prescription Drug Affordability Councils and Boards working on prescription affordability at the state-level. We look forward to working with Senator Booker to pass the Prescription Drug and Affordability and Access Act so that New Jersey patients and families as well as those nationally can access the prescription medications they need, whenever they need them and at a price they can afford."

To read the full text of the bill, click here.

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