A group of lawmakers are arguing that forcing drugmakers to explain their reason for charging so much for drugs could lead to major reforms in lowering prices.
That is why two bipartisan senators and a House member on Tuesday introduced the FAIR Drug Pricing Act. The bill would require drugmakers to disclose and provide more information on planned price hikes, including detailing research and development costs.
Drug companies often say that they need to charge higher prices to recoup development costs, but aren’t required to say how much development cost on a specific product.
Lawmakers believe the bill would lead to lower prices.
“This legislation would bring much-needed transparency to prescription drug prices – a policy that 8 in 10 Americans support, according to the Kaiser Family Foundation,” said Sen. John McCain, R-Ariz. “Transparency leads to accountability, and it is past time that mantra applied to the skyrocketing cost of prescription medication.”
McCain sponsored the Senate bill alongside Sen. Tammy Baldwin, D-Wis., and Rep. Jan Schakowsky, D-Ill., in the House.
The bill specifically requires drug makers to notify the Trump administration and submit a transparency and justification report 30 days before increasing the price of products that cost at least $100 by more than 10 percent one year or 25 percent over three years.
“The report will require manufacturers to provide a justification for each price increase, manufacturing, research and development costs for the qualifying drug, net profits attributable to the qualifying drug, marketing and advertising spending on the qualifying drug, and other information as deemed appropriate,” according to a statement.
The bill was introduced last Congress but did not go anywhere.
Lawmakers have been pushing again legislation to lower prescription drug prices, hoping they have an ally in President Trump, who has railed against high prices.
While Trump hasn’t thrown his weight behind any legislation, lawmakers are pleading with his administration to take executive actions on the issue.
