Life Sciences

BOSTON — Out-of-pocket drug costs for seniors may rise under President Trump’s Most Favored Nation (MFN) proposal if policymakers do not address the role of pharmacy benefit managers (PBMs), according to a brief released today by the Pioneer Institute.

A new data tool from Pioneer Institute reveals that federal drug price controls—intended to reduce out-of-pocket costs for seniors—are instead making many prescription drugs more expensive for Medicare beneficiaries.  

Congress likely to take up PBM reform early this year; Pioneer Institute Calls for PBM’s to be more transparent

In 1992, Congress thought it had a brilliant idea to help hospitals that served low-income and uninsured patients. Under the 340B Drug Pricing Program, Congress simply required pharmaceutical companies to sell their drugs to certain non-profit hospitals at steep discounts. Congress felt...

The drug company’s choice is to walk away from millions in revenue from a given country and deny their people a lifesaving drug, or swallow hard and accept an unfair price that is nowhere near the drug’s value. For the sake of shareholders and patients, drug companies typically accept the unfair price and devote the revenue to offsetting their previous investments. In short, other nations are freeloading off of American R&D.

The life sciences sector in Massachusetts — which has been flying so high for so long — is about to experience a very hard landing. With the adoption of prescription drug price controls in the Inflation Reduction Act (IRA), drug research and development — the heart of the life sciences sector in Massachusetts — is about to experience a nuclear winter.

Patent protections on new drugs have unleashed an unprecedented wave of innovation that has benefited patients and should be fiercely guarded, according to a new study published by Pioneer Institute. New research indicates that price controls contained in the Inflation Reduction Act will result in 230 fewer drugs coming to market over the next decade and job losses of between 730,000 and 1.1 million.

Ron DeSantis proposed in November 2020 to import drugs from Canada for state agencies such as Medicaid, prisons and other public healthcare programs. The goal is to save $150 million in state taxpayer funds. But the Biden administration seems unlikely to approve the plan, and the FDA has raised objections. Here's why the DeSantis plan will not — and cannot — save even a dollar.

The Biden administration's formation of a working group to “develop a framework for the implementation of the march-in provision of the Bayh-Dole Act" could have serious adverse consequences for university research and biopharmaceutical innovation. It represents a particularly dangerous threat to the thriving life sciences cluster in Greater Boston.

In recent years, pharmacy benefit managers (PBMs) have instituted programs to keep out-of-pocket drug costs high for patients. Why is the administration so eager to protect federal employees from high out-of-pocket costs but is perfectly happy for PBMs to enroll millions of other patients in these programs?