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Friday, Feb 3 2017

Full Issue

Bill Would Aim To Curb High Drug Prices By Triggering Competition Through Generics

Big brand-name drug companies would likely support the legislation from Rep. Greg Walden, chairman of the House Energy and Commerce Committee, since it focuses on marketplace competition rather than government intervention. Meanwhile, a California lawmaker is moving to limit the use of coupons for drugs.

A powerful House lawmaker said he would push for legislation to stymie drug price-gouging by encouraging development of generic copies, after attending a meeting at the White House Tuesday with drug-company executives. Rep. Greg Walden (R., Ore.), chairman of the House Energy and Commerce Committee, announced at a hearing Thursday his support for a bill that was introduced last year largely with Democrat support but then languished. (Rockoff, 2/2)

The bill, which mirrors a similar effort that was introduced last year but languished, would provide incentives to drug makers to develop generics when there is a lack of competition or a shortage exists. The bill would allow the Department of Health and Human Services to review an application for a drug within six months and expedite inspection of any facility that would make the medicine. (Silverman, 2/2)

"Specifically the bill will require the [Food and Drug Administration] to prioritize, expedite and review generic applications of drug products that are currently in shortage, or where there are few manufacturers on the market," Walden said. (Hellmann, 2/2)

鈥淧resident Trump made it clear in the White House meeting I attended with him and Vice President Pence: He wants competition that will bring lower drug prices and that is precisely what this measure will accomplish,鈥 Walden said at an Energy and Commerce Health Subcommittee hearing, referring to a White House meeting with pharmaceutical executives. (McIntire, 2/2)

Drug companies often offer coupons or vouchers to take the sting out of certain medications' high price tags. But one Democratic lawmaker says聽such offers actually contribute to high聽healthcare costs 鈥 and is proposing legislation to limit their use. Assemblyman Jim Wood (D-Healdsburg) has introduced a measure that would prohibit the use of coupons for medications when there are cheaper drug options available. (Mason, 2/2)

Previous California Healthline coverage:聽

And聽more and more states are trying to聽protect patients when insurers want to raise medication prices or cease coverage in the middle of the year聽鈥

[M]ore states are adopting policies that prevent insurers from ceasing to cover a medication in the middle of the year, when a patient is still locked in to a particular plan, unless there is a good medical reason for doing so. The laws also limit midyear increases in what patients must pay for a drug. In the last two years, California and Nevada have adopted such rules. Florida is considering and Tennessee is expected to consider similar legislation this year, and Massachusetts has created a commission to explore the idea. (Ollove, 2/2)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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