Build Back Better Act Will Destroy Vibrant U.S. Pharmaceutical Industry | Citizens Against Government Waste

Build Back Better Act Will Destroy Vibrant U.S. Pharmaceutical Industry

The WasteWatcher

The Build Back Better Act, (BBBA), H.R. 5376, is not only not paid for, as President Biden and Democratic leadership claims, but it also contains disastrous policies like prescription drug controls based on H.R. 3.  This big-government approach to lowering drug prices will result in devasting consequences for the American people.

In their latest report, “Price Controls on Pharmaceuticals Are Bad Medicine,” Citizens Against Government Waste (CAGW) analyzes the consequences of the bad medicine included in the BBBA.  Adopting the price controls in the bill will move the U.S. one step closer to government-run healthcare.

This poorly planned public policy will significantly hinder drug research and development for all diseases, particularly rare diseases, and disproportionately impact small biopharmaceutical companies.  The provisions of the BBBA will allow the government to set prices for pharmaceuticals and further distort the marketplace.  The Congressional Budget Office has found that passage of these price controls would have compounding negative implications regarding drug development.  In the third decade, Americans would see 9 percent fewer drugs developed, but CAGW’s report shows how this is a considerable underestimate.  There is especially concerning for patients suffering from cancer, rare disease, or childhood disease.

Government bureaucrats are unqualified to determine the true price of a drug and inserting more red tape into the healthcare marketplace will produce unhealthy results for the American people and the economy.  If a pharmaceutical company does not agree to the government’s “negotiated” price, it will face a significant tax.  Investors will start looking elsewhere if they know that the government will determine whether they can get back the money the put into biopharmaceutical research and development.

There is better medicine to reduce prices, including faster approval of new drugs and increased development of generics and biosimilars.  Patient-centered care should also be prioritized by legislators.  The passage of this bill will result in fewer choices for patients, higher costs, and less accessibility.

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