Pete for America
For Immediate Release
October 7, 2019
Contact:
Chris Meagher

Pete Buttigieg Announces Plan to Curb the Rising Cost of Prescription Drugs


SOUTH BEND, IN — Today, Pete Buttigieg released his ‘Affordable Medicine for All’ plan that will protect Americans from the rising cost of prescription drugs by compelling pharmaceutical companies to price responsibly and work for—not against—the American people.
 
“Time and time again, Washington has proven that it’s either uninterested in or incapable of addressing this problem. Instead of siding with Americans, politicians have stood with Big Pharma, as they did when Congress barred the federal government from negotiating with pharmaceutical companies on drug prices for seniors,” said Buttigieg. “It’s time for a new era of leadership in Washington who will finally make drugs affordable and take on pharmaceutical companies.”

Currently, Americans spend more than $1,200 on prescription drugs per person per year. That’s more than double what the British, Norwegians, and Italians pay per person. Three in ten Americans skip doses or forgo filling prescriptions due to costs. Pharmaceutical companies are the most profitable companies in the entire health care sector. In the first six months of 2019, pharmaceutical companies increased prices for 3,400 drugs, and for those drugs, the average increase was 10.5 percent, five times the rate of inflation. And more than 40 drugs had price hikes greater than 100 percent.

Pete’s Affordable Medicine for All plan will ensure that Americans can access affordable, quality prescription drugs with policies that:

  • Cut out-of-pocket prescription drug costs for seniors on Medicare by at least 50% by the end of Pete’s first term, including an out-of-pocket cap on prescription drug costs of $200 per month
  • Cap out-of-pocket spending on prescription drugs under $250 per month for everyone choosing public coverage under Pete’s Medicare for All Who Want It plan
  • Allow the federal government to negotiate drug prices with pharmaceutical companies to make drugs more affordable for everyone
  • Hold pharmaceutical companies accountable for price gouging by exercising ‘eminent domain’ to take patents away from “worst offenders” that refuse to lower prices for essential drugs
  • Rein in outrageous drug price increases by penalizing pharmaceutical companies that raise prices by more than inflation
  • Bring transparency to drug pricing by requiring pharmaceutical companies under a public plan or Medicare to report prices, discounts, rebates and free goods, and costs of manufacturing drugs to the federal government
  • Institute a $0 co-pay for high-quality generic medicines for low-income people on Medicare, Medicaid, and Pete’s Medicare for All Who Want It plan
  • Reduce median annual out-of-pocket drug spending for middle-class Americans on Medicare Part D living with cancer by at least $5,100 and by at least $2,000 for those living with certain immune disorders, such as rheumatoid arthritis or multiple sclerosis.
  • Help end the opioid epidemic by dramatically reducing the cost of naloxone, a drug used to reverse opioid overdoses, and other medicines used to treat substance abuse
For too long, corporate health care has prioritized profits over people, and so have politicians in Washington. Pete has the courage to break with the status quo by focusing on real solutions that will lower costs and make needed—even life-saving—medicines available to all Americans.

Read his full plan HERE.
https://peteforamerica.com/policies/affordable-medicine/

AFFORDABLE MEDICINE FOR ALL 

A Plan to Slash Drug Prices and Boost Medical Innovation

We are living in a golden age of medical innovation. Medicines have vastly extended life expectancy for people with Hodgkin's lymphoma and cystic fibrosis, protected us from many viruses and certain cancers, and put us within reach of ending the AIDS epidemic for good.

Yet, far too many of us are denied access to the benefits of these breakthrough treatments and potentially life-saving medicines.1 Drugs in the United States are more expensive than drugs anywhere else in the world.2 Americans pay an average of $600 a year more for prescription drugs than residents of most other developed countries.3 While millions of Americans struggle to pay for medicine, pharmaceutical companies are enjoying record profits and remain the most profitable companies in the entire health industry.4

Drugs are more expensive in the United States than anywhere else in the world

Time and time again, Washington has proven that it’s either uninterested or incapable of addressing this problem—with real-life consequences. Nearly one in four Americans struggle to pay for medicine.5 Three in ten skip doses or forgo filling prescriptions because they can’t afford them.6 Families across the country face difficult choices: medicine or child care for my two-year-old? Medicine or making rent on time? Medicine to treat my diabetes or to control my cholesterol?

Families across the country face difficult choices: medicine or child care for my two-year-old? Medicine or making rent on time? Medicine to treat my diabetes or to control my cholesterol?

It’s time for a new era of leadership ready and eager to make drugs affordable and take on pharmaceutical companies. Pete has the courage to break with the status quo by focusing on real solutions that will lower costs and make needed—even life-saving—prescription drugs available to all Americans.

Pete’s Affordable Medicines for All plan dramatically reduces prescription drug costs, forces pharmaceutical companies to price responsibly and pay their fair share, and encourages innovation in new medicine manufacturing, financing, and delivery.

Pete's plan will:

    Cut out-of-pocket drug spending for seniors on Medicare by at least 50% by the end of Pete’s first term, including an out-of-pocket cap on prescription drug costs of $200 per month.
    Cap out-of-pocket spending on prescription drugs under $250 per month for everyone choosing public coverage under Pete’s Medicare for All Who Want It plan.
    Make co-payments for generic drugs $0 for people with low incomes insured by the public plan, Medicare, and Medicaid.
    Reduce median annual out-of-pocket drug spending for middle-class Americans on Medicare Part D living with cancer by at least $5,1007 and by at least $2,000 for those living with certain immune disorders, such as rheumatoid arthritis or multiple sclerosis.8
    Guarantee that no one living with diabetes dies from rationing insulin due to cost.
    Help end the opioid epidemic by dramatically reducing the cost of naloxone, a drug used to reverse opioid overdoses, and other medicines used to treat substance abuse.

 Read more about how Pete’s plan will lower costs for millions of Americans.

Protecting Your Wallet

GUARANTEE EVERYONE HAS ACCESS TO AFFORDABLE PRESCRIPTION DRUGS THROUGH MEDICARE FOR ALL WHO WANT IT, WHICH WILL HAVE A MONTHLY OUT-OF-POCKET DRUG SPENDING CAP UNDER $250.
Pete’s Medicare for All Who Want It plan gives everyone the option of getting insurance coverage through an affordable and comprehensive new public insurance plan. To ensure affordable medicines, the federal government will be able to negotiate lower drug prices with pharmaceutical companies on behalf of the public plan. It will also offer an affordable prescription drug benefit package that caps monthly out-of-pocket drug spending under $250.

BRING DOWN THE COST OF PRESCRIPTION DRUGS FOR SENIORS BY CAPPING PART D MONTHLY OUT-OF-POCKET COSTS AT $200.
Currently, when Medicare pharmacy benefit (Part D) beneficiaries reach their catastrophic coverage threshold, they are still required to pay 5% of drug costs. This means that there’s actually no limit on what a beneficiary can pay for prescription drugs. Pete will work with Congress to place a monthly cap on Part D out-pocket costs of $200 and a maximum cap on annual Part D out-of-pocket spending of $2,400. Seniors with lower incomes will have lower caps, as they are eligible for subsidies.

MAKE CO-PAYMENTS FOR GENERIC DRUGS $0 FOR PEOPLE WITH LOW INCOMES INSURED BY THE PUBLIC PLAN, MEDICARE, AND MEDICAID.
Generic drugs make up 90% of the total prescription drug volume sold in the United States.9 Pete supports eliminating co-payments on all generic drugs covered under Medicaid, and for low-income individuals in the public plan and Medicare. Pete also supports identifying additional incentives to encourage clinicians, hospitals, and pharmacies to use generic drugs whenever clinically appropriate.10

BRING DOWN THE COST OF PRESCRIPTION DRUGS—STARTING WITH DRUGS THAT MANAGE DIABETES, SUCH AS INSULIN—FOR ALL PAYERS BY ALLOWING THE FEDERAL GOVERNMENT TO NEGOTIATE DRUG PRICES WITH PHARMACEUTICAL COMPANIES.
Corporate health care prioritizes profits over people—and so have politicians in Washington. Congress currently bars the federal government from negotiating for lower drug prices with pharmaceutical companies. Pete will empower the federal government to negotiate down the price of drugs on behalf of people covered by Medicare and the public plan.11 Pharmaceutical companies will be heavily penalized if they refuse to participate in negotiations or leave the negotiation before a fair price is agreed upon. The first drugs for negotiation will include those to treat diabetes, asthma, arthritis, HIV, and cancer.

 Read more about how Pete’s plan will help seniors and people with low incomes.

Confronting Pharmaceutical Companies
FOR “WORST OFFENDER” PHARMACEUTICAL COMPANIES THAT CONTINUE TO PRICE EGREGIOUSLY, EXERCISE THE GOVERNMENT’S “EMINENT DOMAIN” RIGHTS TO TAME HIGH DRUG PRICES.
Patents are a privilege guaranteed by the American people to innovators. Pharmaceutical companies found abusing that privilege through irresponsible pricing should face real consequences. Under certain circumstances, the federal government has the power to acquire intellectual property rights from pharmaceutical companies. For “worst offender” pharmaceutical companies that price in a way that harms patients by making drugs unaffordable, as in when attempts at direct negotiation are rebuffed or in cases of a natural disaster or national public health emergency, Pete will judiciously exercise these rights to take away patents.

THE DEADLY CONSEQUENCES OF OVERPRICED MEDICINE
In June 2019, Jesmiya David Scherer-Radcliff, a 21-year-old from Minnesota who lived with diabetes, died while rationing his insulin. He could not afford this life-saving drug despite working two jobs. At least five others have died under similar circumstances. Young people are dying from lack of access to insulin that is too expensive to manage their diabetes, a disease they didn’t cause and a daily treatment they can’t live without. This is a uniquely American tragedy. A vial of insulin that costs us $320 is available in Canada for $30; in Italy, the same vial is free.

INCREASE TAXES ON PHARMACEUTICAL COMPANIES TO ENSURE THEY PAY THEIR FAIR SHARE AND HELP MAKE DRUGS MORE AFFORDABLE FOR ALL.
As millions of Americans struggle to pay for drugs, pharmaceutical companies are getting richer and richer, remaining some of the most profitable companies in the health care industry. Pete will increase the annual Branded Prescription Drug Fee on drug manufacturers and importers.12 The revenue collected by this fee will be used to help fund American’s access to affordable prescription drugs.

REIN IN OUTRAGEOUS DRUG PRICE INCREASES BY PENALIZING PHARMACEUTICAL COMPANIES THAT RAISE PRICES BY MORE THAN INFLATION.
In the first six months of 2019, pharmaceutical companies increased prices for 3,400 drugs; the average increase was five times the rate of inflation.13 Pete wats to protect people against unexpected price increases. Pete will implement pricing protections against outrageous drug price inflation in Medicare and the public plan. Every quarter, branded pharmaceutical companies would be required to pay a rebate for drugs that increase faster than inflation.

 Read more about how Pete’s plan will take on pharmaceutical companies.

Investing in New & Safe Medicine
EXPAND PUBLIC INVESTMENT IN THE DEVELOPMENT AND MANUFACTURING OF MEDICINES TO ADDRESS SIGNIFICANT UNMET NEEDS.
Pete will broaden current federal incentives that support research for drug development that prioritizes unmet needs. As a matter of national security, Pete also supports investing in expanding American drug manufacturing capacity for essential drugs, especially those either prone to shortages and quality problems, or dependent on foreign production.

BRING TRANSPARENCY TO DRUG PRICING.
Pete will establish a national All-Payer Claims Database so patients, providers, and insurers better understand medication cost and quality.14 Further, all pharmaceutical companies with an agreement to sell prescription drugs to public plans, as well as pharmacy benefit managers that oversee the prescription drug benefit, will be required to report to the federal government information related to their balance sheets, including sales and spread pricing.15​ 16

SECURE THE QUALITY AND SAFETY OF DRUGS PRODUCED AT HOME AND ABROAD.
Pete will empower federal agencies to better secure the quality and safety of drugs destined for American consumption, including by improving systems that regulate medicines coming from abroad. This will entail increasing inspection staff, evaluating the safety of imports, and bolstering tracing initiatives.

 Read more about how Pete’s plan will ensure safer medicines for all.

Our health care system should prioritize people over profit. Safe and affordable medicine should be an American right. If you’re with us, text MEDICINE to 25859.

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FOOTNOTES
  1. National Academy of Sciences. “Making Medicines Affordable: A National Imperative.” 2017.Back to content
  2. Langreth, Robert. “Quick Take: Drug Prices.” Bloomberg. February 5, 2019.Back to content
  3. Organization for Economic Cooperation and Development. “Pharmaceutical spending.”Back to content
  4. Herman, Bob. “Axios analysis: Drugmakers are getting richer.” Axios. May 13, 2019.Back to content
  5. Garber, Adam, Kilpatrick, Lance, Matthew, Reuben. “The real price of medications: a survey of variations in prescription drug prices.” U.S. Pirg. 2019.Back to content
  6. Kirzinger, Alex. “KFF Health Tracking Poll - February 2019: Prescription Drugs.” Kaiser Family Foundation. March 1, 2019.Back to content
  7. Cubanski, Juliette, Koma, Wyatt, Neuman, Tricia. “The out-of-pocket cost burden for specialty drugs in Medicare Part D.” Kaiser Family Foundation. February 1, 2019. See Figure 2.Back to content
  8. Cubanski, Juliette, Koma, Wyatt, Neuman, Tricia. “The out-of-pocket cost burden for specialty drugs in Medicare Part D.” Kaiser Family Foundation. February 1, 2019. See Figure 2.Back to content
  9. IQVIA. “Medicine use and spending in the U.S.” May 9 2019.Back to content
  10. Dusetzina, Stacie, Shelly Jazowski, Ashley Cole, Joehl Nguyen. “Sending the wrong price signal: why do some brand name drugs cost Medicare beneficiaries less than generics?” Health Affairs. July 2019.Back to content
  11. Cubanski, Juliette, et al. “What’s the latest on Medicare drug pricing negotiations?” Kaiser Family Foundation. July 23, 2019. This is a proposal with multi-stakeholder support.Back to content
  12. Internal Revenue Service. “Annual fee on branded prescription drug manufacturers and importers.” 2015.Back to content
  13. Picchi, Aimee. “Drug prices in 2019 are surging with hikes at five times inflation.” CBS News. July 1, 2019.Back to content
  14. Calsyn, Maura. “Policy options to encourage all-payer claims databases.” Center for American Progress. April 20, 2018Back to content
  15. Dusetzina, Stacie, Bach, Peter. “Prescription drugs- list price, net price, and the rebate caught in the middle.” JAMA Network. March 6, 2019.Back to content
  16. Royce, Trevor, Kircher, Sheetal, Conti, Rena. “Pharmacy benefit manager reform.” JAMA Network. June 20, 2019.Back to content
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