Washington, D.C. – July 25, 2022 – Out-of-control drug prices are a leading driver of health care costs, and they are an increasing burden on hardworking American families. But today, U.S. courts supported an important protection for patients, consumers, and taxpayers against Big Pharma’s schemes. In the case of Pfizer v. United States Department of Health and Human Services (HHS), the U.S. Court of Appeals for the Second Circuit upheld HHS’s longstanding interpretation that the federal Anti-Kickback Statute prohibits drug manufacturers from driving up government costs by providing patients in federal programs like Medicare Part D financial incentives to purchase their products. AHIP issued this statement in response:
“Drug manufacturers alone set and control the launch price and every price increase for the prescription drugs they sell. The Anti-Kickback Statute is an essential protection against the risk of fraud, waste, and abuse that otherwise allows drug manufacturers to subsidize patients’ up-front costs to induce purchases of their products. By upholding these protections, the courts have taken an important step to protect Americans from what would otherwise be an unchecked multi-billion-dollar price tag that would make coverage and care less affordable for everyone.”
AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone. Visit www.ahip.org to learn how working together, we are Guiding Greater Health.