For Immediate Release:
Contact: Kelly Broadway, 202-808-8853
Innovation & Access Can’t Happen with Inflation Reduction Act’s Restrictive Policies
Washington, D.C. – The following statement from the Council for Affordable Health Coverage is in advance of today’s Ways and Means Subcommittee Health hearing on Examining Policies that Inhibit Innovation and Patient Access.
“We are glad the Ways and Means Committee is holding this hearing today. Since the passage of the Inflation Reduction Act, we’ve seen reduced research that will lead to fewer therapies, a lack of transparency and good government in implementing the price negotiation program, and a potential train wreck for patients with rare diseases. Congress must open up the process to transparency and accountability while promoting innovation. We are pleased the Committee is examining these issues, but encourage all Members to support two changes to the law:
- Require CMS to use the normal regulatory process that has been in place since 1946 in implementing the Medicare drug price negotiation program
- Fix the Orphan Drug mistake that will create powerful incentives to curb research on cures and therapies for patients with cancer, Alzheimer’s, and rare diseases.
The impartial Congressional Budget Office, CMS’s Actuary, and numerous academics have predicted the Inflation Reduction Act will create incentives to produce fewer lifesaving and life-changing drug therapies. Unfortunately, we are already seeing this play out in the market. After the enactment of the Inflation Reduction Act, research and development of new therapies immediately impacted patients, resulting in at least 24 companies curbing new drug investigations. Also, CMS has moved to restrict access to new therapies and is proposing new rules that go well beyond FDA approval standards just to provide seniors and the disabled a choice of medicines.
Congress should act to fix these mistakes, accelerate innovation, and expand hope for patients with horrible diseases.”
CAHC previously sent the Centers for Medicare & Medicaid Services (CMS) comments on its Medicare Drug Price Negotiation Program Guidance.