ICYMI: Durbin Holds Senate Judiciary Committee Hearing In Chicago On Reducing Prescription Drug Costs

10.30.24

ICYMI: Durbin Holds Senate Judiciary Committee Hearing In Chicago On Reducing Prescription Drug Costs

The hearing was also attended by Chicago-are Members of Congress, who delivered remarks on congressional efforts to cut prescription drug costs

CHICAGO - In case you missed it, U.S. Senate Majority Whip Dick Durbin, Chair of the Senate Judiciary Committee, held a Senate Judiciary Committee field hearing in Chicago entitled "Reducing Prescription Drug Prices: How Competition Can Make Medications Affordable for Patients." During the hearing, Durbin examined the pharmaceutical industry's anti-competitive tactics and highlighted the success of the Inflation Reduction Act (IRA) in addressing high prescription drug prices for Medicare beneficiaries while acknowledging that more must be done to cut costs.

"It is a scandal that people in the United States pay sky-high prescription drug prices while the same drug costs a fraction of the price in another country. On average, Americans are paying four times more than people in similar countries pay for brand-name medications. It's appalling that an overinflated price tag could prevent an American from accessing the medication they need to live a healthy life," said Durbin. "Yesterday's hearing was about uncovering Big Pharma's abuse of the patent system and exposing its excessive advertising, which aims to fuel demand for expensive medications that are walled-off from competition by clever patent schemes."

In addition to Durbin, U.S. Representatives Danny Davis (D-IL-07), Jan Schakowsky (D-IL-09), Bill Foster (D-IL-11), Raja Krishnamoorthi (D-IL-08), Sean Casten (D-IL-06), Jesús G. "Chuy" García (D-IL-04), and Delia Ramirez (D-IL-03), as well as Illinois Attorney General Kwame Raoul, participated in the hearing.

"In Congress, we have taken some significant steps forward. The Inflation Reduction Act, for example, has empowered Medicare to negotiate the price of critical drugs, resulting in substantial cost savings for seniors. But our work is far from over. If we are serious about making health care affordable, we must bring transparency and accountability to the pharmaceutical industry and close the loopholes that allow drug companies to sidestep competition," said Davis.

"For too long, federal laws have allowed Big Pharma to run rogue and rake in record profits while everyday Americans struggle to afford their lifesaving medications. I know constituents who have resorted to rationing their medication due to the high costs. Here in the United States, we pay two to three times more for the same drugs as other countries. This is unacceptable," said Schakowsky. "Thanks to the leadership of President Joe Biden, Vice President Kamala Harris, and Democrats in Congress, Medicare enrollees have already saved nearly $1 billion this year because of the new cap on out-of-pocket costs! While this is a historic achievement, there is still more work to be done. The days of Big Pharma gouging consumers are numbered. All Americans deserve access to quality, affordable, and accessible health care."

"Last Congress, under a Democratic majority, we enacted historic legislation to lower the cost of prescription drugs for seniors - capping the cost of insulin at $35 per month, capping out-of-pocket prescription costs at $2,000 per year, and finally allowing Medicare to negotiate lower costs for life-saving drugs. We need to build upon this success and ensure that all Americans are able to get the medication they need without breaking the bank," said Foster.

"Pharmacy Benefit Managers (PBMs) are raising drug costs for Americans and shutting down countless independent pharmacies," Krishnamoorthi said. "The egregious business practices of PBMs harm patients and make it more difficult for our constituents to access the medications they need. I will continue to do everything in my power to pass much-needed PBM reform legislation. I want to thank Senator Durbin for his leadership in holding today's hearing and all my colleagues who participated for their shared commitment to lowering prescription drug costs for all Americans."

"Thanks to the Inflation Reduction Act, 24,000 people in the 6th Congressional District are saving an average of $533 on their prescription drugs compared to four years ago - with both of those numbers projected to increase next year," said Casten. "That is something we should take pride in as Americans, but we must stay vigilant. Far too many folks still pay too much for life-saving drugs and care. We must finish what we started and ensure our seniors have access to the reliable, affordable health care they deserve."

"Despite remarkable progress in bringing medication prices down, there are still tens of thousands of people who cannot benefit from these lower prices because they are not covered by Medicare. So for the thousands of uninsured or privately insured individuals in my district, we must expand these programs into a comprehensive approach," said García. "We must address at their root the anticompetitive practices used by big pharmaceutical companies to stifle competition and ultimately, price-gouge consumers, and I look forward to working with my colleagues at this briefing toward affordable health care for all."

"The cost of prescription drugs in America is too damn high! Congress must bring the full power of the federal government - regulation, legislation, and negotiation - to fight for our constituents and ensure every family has access to the care and assistance they need," said Ramirez. "I am thankful to Senator Durbin and the Senate Committee on the Judiciary for holding a necessary hearing to address a broken system that regularly puts profits over people's wellbeing."

"Americans should be able to access life-saving prescriptions without having to choose between paying for medications and other necessities. I would like to thank Sen. Durbin for convening this Senate Judiciary Committee hearing because states and the federal government must collectively review the pharmaceutical industry's unlawful practices and ensure drug companies are held accountable for dramatically increasing drug prices," said Raoul. "I will continue to work at the state level to hold pharmaceutical companies accountable for anticompetitive tactics and am committed to advocating nationally to ensure companies cannot continue to increase drug prices at the expense of patient lives."

The United States has the highest prescription drug prices in the developed world, on average nearly four times higher than what other countries pay for some of the most common brand-name medications. Despite claims that these prices are necessary to fund research and development into the next generation of drugs, research suggests that the majority of innovation is driven by smaller companies, as well as taxpayer funding through the National Institutes of Health. The Committee has jurisdiction over competition issues and the intellectual property system, which play critical roles in incentivizing true innovation and protecting a healthy market that keeps prices forprescription drugs within reach of the patients that need them.

Durbin, Senate Democrats, and the Biden-Harris Administration have taken numerous steps to lower the costs of prescription drugs. Democrats' Inflation Reduction Actprovided the Administration the authority to negotiate drug prices with Big Pharma, which has already resulted in price reduction of up to 79 percent for 10 of the most expensive and frequently-dispensed prescription drugs for seniors. In total, these reduced prices are estimated to save approximately nine million seniors a total of $1.5 billion in annual out-of-pocket costs, and save the Medicare program $6 billion.

More than 280,000 Medicare enrollees in Illinois take one of these prescription drugs selected for negotiation, including 142,000 seniors in Illinois who take a covered blood thinner that will see a price reduction of up to $3,840 per year. Because of the Inflation Reduction Act, 449,000 Medicare Part D enrollees in Illinois are expected to see a collective $120 million in savings from a new $2,000 cap on out-of-pocket costs. The legislation will also cap costs for covered insulin at $35 per month for people with Medicare, make recommended vaccines available at no costs for 1.4 million seniors in Illinois, and require drug companies to pay a rebate to Medicare if they raise prices faster than the rate of inflation.

The 10 drugs that the Biden-Harris Administration negotiated down the price of include:

• Januvia - diabetes medication, cost lowered by 79 percent;
• Enbrel - arthritis/psoriasis medication, cost lowered by 67 percent;
• Xarelto - blood thinner medication, cost lowered by 62 percent;
• Entresto - heart medication, cost lowered by 53 percent;
• Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen, NovoLog Pen-Fill - diabetes medications, cost lowered by 76 percent;
• Jardiance - diabetes/heart/kidney medication, cost lowered by 66 percent;
• Eliquis - blood thinner medication, cost lowered by 56 percent;
• Imbruvica - cancer medication, cost lowered by 38 percent;
• Farxiga - diabetes/heart/kidney medication, cost lowered by 68 percent; and
• Stelara - arthritis/psoriasis medication, cost lowered by 66 percent.

Earlier this Congress, a package of bills advanced unanimously out of the Committee to lower prescription drug prices and are awaiting a vote in the full Senate, including the Interagency Patent Coordination and Improvement Act introduced by U.S. Senators Dick Durbin (D-IL) and Thom Tillis (R-NC).

Additionally, Durbin held a full committee hearing in May that scrutinized pharmaceutical companies' abuse of the Orange Book and examined prescription drug prices, competition, and how to ensure medications are accessible and affordable for patients.

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