Perspectives: Biden Has Chance To Move Quickly On Affordable Drugs; Generics On Front Line Of Covid Fight

The Hill: The Path Forward For The Biden Administration: Lowering Drug Costs Without Raising Premiums For Seniors 
The new Biden administration has started off strong, taking a thoughtful approach to any number of critical health care issues and pulling back a number of new regulations to take a fresh look at these public policy issues. To avoid significant disruption of the Medicare Part D program and avoid a spike in premiums at a time when seniors can least afford it, the administration should pull back the rebate rule, issued at the last minute by the outgoing administration. Prescription drug rebates are a primary negotiating tool used by pharmacy benefit managers (PBMs) to exert leverage on drug manufacturers to reduce costs. As validated in reports issued by the Government Accountability Office and Health and Human Services Office of Inspector General, rebates are fully passed through from the PBM to the plan sponsor and used to keep premiums low and affordable, which has led to the historic success of the Part D program. (J.C. Scott, 1/27)

Managed Health Care Executive: While We Await Vaccine Progress, We Can Trust In Generic Drugs
Generic drugs account for 90% of the prescriptions filled in the United States. They are the backbone of healthcare providers’ treatment protocol and they are remarkably cost effective: despite being 90% of the prescriptions filled, generics account for only 20% of drug spending. But, while generics are indispensable to the American healthcare system and central to the treatment of COVID-19, the industry’s future still remains uncertain. As President Biden takes office amid a second wave of COVID-19 infections, it’s never been more critical that policymakers recognize the lifesaving role that generic drugs serve. While generic drugs have long been proven to drive down healthcare costs, the essential role they’ve played during the global pandemic has reinforced the necessity of a healthy generics marketplace and emphasized the need for policy that will support the sustainability of the generics and biosimilars industry. (Dan Leonard, 2/1)

The Washington Post: Maryland Should Reject An Arbitrary Upper Limit On Prescription Drugs 
As millions of Americans nationwide patiently wait for access to the coronavirus vaccine, why would lawmakers enact a bill to reduce the availability of lifesaving treatments? Those effects would likely result from legislation the Maryland House of Delegates will soon vote on. As the parent of a child born with a disability, I believe the move will harm some of the most vulnerable among us. In 2019, the Maryland General Assembly voted to establish a Prescription Drug Affordability Board to oversee the prices of prescription drugs. Because the original legislation did not include a funding mechanism for the board, last year lawmakers passed a second bill taxing drug manufacturers and insurers to fund the board’s operations. The House of Delegates will soon consider whether to override Gov. Larry Hogan’s (R) veto of that funding bill. (Mary Vought, 1/29)

The Tennessee Tribune: When Addressing Drug Prices, There's A Right Way And A Wrong Way - The Tennessee Tribune
In what may have been the last significant action of his presidency, former President Trump issued two executive orders designed to lower prescription drug spending in Medicare. The first order would eliminate the current system of “rebates” for prescription drugs covered by Medicare Part D. The second order, dubbed the “Most Favored Nation” model, ties Medicare payments for advanced medicines covered by Medicare Part B — think chemotherapy infusions and other physician-administered medicines — to the lowest prices paid by governments abroad. (Ron Klink, 1/31)

Stat: How Should Biopharma Companies Respond To Drug Price Controls? 
As the Biden administration assumes leadership in Washington and former President Donald Trump’s most-favored nation ruling has been halted by a federal judge, drug price controls don’t feel imminent. Though this should provide some relief to the R&D-based biopharmaceutical industry, the relief may be short-lived. (Ed Schoonveld, 2/2)