In an effort provide relief to millions of Americans impacted by high prescription drug costs, members of Congress are in the process of calling pharmaceutical companies to the carpet to explain their pricing. At the same time, representatives have also submitted bipartisan legislation to bring the cost of medical devices down. Congressman Darin LaHood, R-Dunlap, is among the members of Congress involved in the struggle to bring drug and medical device costs down for consumers.
Lowering drug costs
LaHood told The Voice on Thursday on the issue of bringing down the price of prescription drugs has bipartisan support.
“On the Ways and Mean Committee we have jurisdiction over a big portfolio of that. We’ve had a number of hearings looking at how we stop drug companies from gouging individuals and running up the price of drugs,” LaHood said. “But there are a few things we are looking at. One, we have to get a better transparency process. We have to know what these companies are doing. What their profits are and have a better idea of …their drug making apparatus. The second thing is figuring out what type of regulation needs to be involved. There have been way too many examples whether it’s an EpiPen or insulin…drugs that have been around for a long time, but have spiked. It appears it’s being done purely for profit motive agenda. That’s caused the price to go up.“
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LaHood said another aspect is judging how much the government needs to be involved.
“I’m not a fane of going to a European model where the government is involved with everything, and they regulate the entire industry,” he added. “But, I don’t think that Pharma has done a good enough job of self-regulating and doing what needs to be done. It’s a balance. We are trying to find that balance and what’s the appropriate level of regulation to put in place.“
While there is respect to possible impact to drug company profits and thereby stock values, the impact to the public’s pocket book when paying for prescription drugs take priority. House Oversight Committee Chairman Elijah Cummings has been at the forefront of the House hearings on prescription drug prices. It was recently revealed that Congressman Jim Jordan, R-Ohio, ranking member of the House Oversight and Reform Committee and Congressman Mark Meadows, R-N.C., ranking members of the Government Operations Subcommittee sent letters to 12 pharmaceutical companies. In their letters, Jordan and Meadows claim Cummings has boasted about impacting pharmaceutical company stock values during the process of investigating drug prices.
An excerpt from the letter being circulated reads: “Although addressing rising drug prices should be a bipartisan issue, Chairman Cummings did not consult with Republican members before launching his investigation. Now, in light of Chairman Cummings’ recent boast that his investigation has affected pharmaceutical ‘stock prices’ — and the chairman’s decision to unilaterally release sensitive information obtained by the committee in another investigation — we feel obliged to inform you about these matters.”
“While we cannot speculate about Chairman Cummings’ motives, we believe the committee should not pursue an investigation to ‘impact . . . stock prices with regard to drugs’ — especially when there is bipartisan interest in real oversight of rising prescription drug prices.“
The complete letters can be read online here: https://bit.ly/2UCmOdq
”Im glad they sent the letters,” LaHood said of the actions by congressmen Meadows and Jordan. “But it gets to what’s going on behind closed doors. I’m all for the market place and the free enterprise system to flow. But it’s the role for the government to step in when the price of drugs is going up, and up and up. It’s hurting seniors and middle class folks. There doesn’t seem to be a good rationale for doing that. I’m supportive of drug companies finding miracle cures and working on finding solutions to diseases. But there needs to be an appropriate balance. We have an obligation and a responsibility o bring down these costs.“
Any major changes to drug pricing may not only require strong bipartisan support as LaHood states, but support from the White House as well. A 23-page report prepared by Cummings in May 2018 analyzes the increase of drug prices from before President Donald Trump took office to one year after. Cummings concluded: “Instead of advocating for legislation that would lower drug prices, President Trump spent much of his first year in office pressing Congress to enact tax cuts that primarily benefit large corporations, including drug companies. There is little indication that drug companies intend to use their tax windfalls to lower drug prices; instead, they appear to be directing these benefits to shareholders in the form of stock buybacks and higher dividends.“
The report by Cummings can be read on the Democratic majority Oversight and Reform Committee page at: https://bit.ly/2v4h91E
Medical device tax
LaHood joined seven other members of Congress recently to introduce the Medical Innovation Act of 2019, House Resolution 2207. Co-sponsorship is now at 226 representatives and includes 17th District Democratic Rep. Cheri Bustos and 13th District Republican Rep. Rodney Davis. The resolution would repeal the medical device tax put into action by the Affordable Care Act. The tax is scheduled for reinstatement in 2020 unless other action is adopted. The tax is described by LaHood’s staff as a “2.3 percent excise tax on the sale of medical technologies.” In 2018, the House passed a bill to repeal the tax, but the Senate did not act upon it.
“Innovation in the medical device field has reduced the overall cost of health care over time and the medical device tax threatens to stifle ongoing and future breakthrough research advancements in the medical field that can save lives,” stated LaHood in a media release. “Our bill is simple and holds large bipartisan support in Congress. Medical devices have revolutionized health care and we believe fostering an environment that supports innovation in medical research and technology will led to better care and lower costs for consumers around this country. It’s time for the medical device tax to go.“
Date: April 17, 2019
Source: Galva News