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AHIP Statement On “Drug Pricing In America: A Prescription For Change”

posted by AHIP

on January 29, 2019

AHIP submitted a statement for the official record of a hearing held by the Senate Finance Committee on January 29, 2019 on “Drug Pricing in America: A Prescription for Change.”

Our statement explains that health insurance providers (and our pharmacy benefit manager partners) negotiate with manufacturers to make life-saving drugs available and affordable for patients. Still, we emphasize that additional steps are needed—at both the legislative and regulatory levels—to reduce list prices and achieve the goal of delivering more affordable medicines and lower costs for patients, consumers, employers, and taxpayers.

Our statement focuses on:

  • The reality that the prescription drug pricing process is driven entirely by the original list price of a branded drug—which is determined solely by the drug company, not by the market or any other participant in the pharmaceutical supply chain; and
  • Our support for market-based solutions that deliver real competition, create more consumer choice, and ensure open and honest drug pricing and a high-level overview of key areas where we support efforts by Congress and the Administration to put downward pressure on prescription drug prices.