WASHINGTON–(BUSINESS WIRE)–The Council for Citizens Against Government Waste (CCAGW) led a
coalition of 26 fiscally conservative organizations to send a letter
to House and Senate leaders strongly opposing the use of binding
arbitration in Medicare Part B and possibly in Medicare Part D. The
imposition of these sorts of government price controls would stall
innovation and fail to lower the cost of prescription drugs.
Below are five key quotes from the letter:
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“According to the MedPAC June 2017 report and the March briefing,
binding arbitration would come into play for Medicare Part B when a
subjective drug price threshold is exceeded, mainly for a
newly-launched drug, or a drug with no competition. The Department of
Health and Human Services (HHS) secretary would then demand
arbitration from a supposed impartial party.” -
“The government controls the entire process, from the rules to
deciding when arbitration would be utilized to who becomes the
arbitrator. This process makes the arbitrator a non-neutral party that
is between the pharmaceutical manufacturer and the aggrieved HHS. If
the manufacturer chooses not to participate, their drug will not be
covered. How this process could ever be truly fair and independent is
difficult to comprehend. It is in effect a price control.” -
“Our organizations have long maintained that competition, not
government-imposed price controls, lowers cost and encourages
innovation. Too often, the lack of competition can be blamed on
government actions.” -
“It would be better for Congress to make sure the FDA continues to not
only reduce the backlog but also expedite generic drug approval times,
while providing incentives to pharmaceutical manufacturers to develop
generic alternatives to the drugs with no competition. Congress also
needs to focus on how the FDA is implementing the proposals found in
the 21st Century Cures Act that are supposed to modernize and speed up
clinical trials and the drug approval process for innovative drugs.” -
“These market-based solutions are far better than proposals like
binding arbitration that are in fact government price controls.”
The
Council for Citizens Against Government Waste is the lobbying arm of
Citizens Against Government Waste, the nation’s largest nonpartisan,
nonprofit organization dedicated to eliminating waste, fraud, abuse, and
mismanagement in government.
Contacts
Curtis Kalin (202) 467-5318
