Report Exposes Lies and Front Groups Pushed By Big Pharma and Their Republican Allies as Democrats Work to Pass Build Back Better Act
Washington, DC — Today, Protect Our Care is releasing a new report exposing Big Pharma’s campaign of lies and front groups as part of an effort to maintain the status quo that allows drug companies to dictate profits while millions struggle to afford their prescriptions. As Congress is on the cusp of passing the historic Build Back Better Act, Big Pharma is spending millions on their K Street lobbyists and advertisements to block its key provisions that bring down drug prices. With the help of their Republican allies, drug companies have been relentless in their efforts to spread lies about the Democrats’ plan to lower drug prices for working families as part of the Build Back Better Act.
“Democrats in Congress reached a historic agreement to lower prescription drug prices for all Americans through the Build Back Better Act and Big Pharma is running scared,” said Protect Our Care Executive Director Brad Woodhouse. “Fortunately, the American people remain unswayed, with poll after poll showing that policies to reduce drug costs are the most popular provisions in the entire Build Back Better Act. With the support of voters of all parties, President Biden and Democrats in Congress are committed to reining in Big Pharma’s greed and delivering real relief to millions of families. It’s time to put an end to Big Pharma’s greed and give Medicare the power to negotiate for lower drug prices.”
Read the new report on Big Pharma’s campaign of front groups and lies on drug pricing here.
A recent analysis by the Institute for Clinical and Economic Review found that AbbVie hiked the price of its immunosuppressive drug, Humira, by nearly 10 percent. Humira already plays an outsized role in American health care spending as one of the nation’s highest revenue generating drugs, raking in $4.6 billion in the third-quarter of 2021 alone. ICER also found that in its analysis of high-grossing drugs, AbbVie did not provide significant evidence to justify its substantial price hike. This is a pattern of AbbVie, which has hiked the price of Humira more than two dozen times and at rates far outpacing inflation. Build Back Better puts a critical check on the relentless greed of drug makers like AbbVie, who prove that the drug pricing reforms in the act are a necessary step to ensuring American families can access the medications they need at prices they can afford.
How Build Back Better Stops Big Pharma From Raising Prices Faster Than The Rate Of Inflation:
Putting An End To Outrageous Price Increases. Build Back Better stops Big Pharma from raising prices faster than the rate of inflation. This cap would apply to all Americans, no matter whether you are insured or not, and no matter what kind of insurance you have, and is essential to stop arbitrary price increases on essential medications. Over the past 20 years, price increases for brand-name drugs in Medicare Part D have risen at more than twice the rate of inflation.
How Build Back Better Will Bring Big Pharma To The Negotiating Table:
Giving Medicare The Power To Negotiate Lower Drug Prices. For nearly 20 years, Medicare has been banned from negotiating the price of prescription drugs, and Big Pharma has been able to dictate prices while Americans pay three times more for their medications than people in other countries. Under Build Back Better, Medicare will be empowered to negotiate prices for select drugs purchased at the pharmacy counter and administered at a doctor’s office. Beginning in 2025, 10 drugs, in addition to insulin, will be negotiated with that number increasing to 15 drugs in 2026, and 20 drugs in 2028 and into the future. By 2030, more than 100 drugs will be eligible for Medicare price negotiation, in addition to insulin products.
***MEDIA ADVISORY FOR TODAY, NOVEMBER 16 AT 1:10 PM MST // 3:10 PM EST ***
Phoenix, AZ — Today, Tuesday, November 16 at 1:10 PM MST // 3:10 PM EST, U.S. Representative Tom O’Halleran (D-AZ-01), Dora Vasquez, Executive Director of the Arizona Alliance for Retired Americans, and local advocates will join Protect Our Care Arizona, calling on Congress to immediately pass the Build Back Better Act. The coalition will also discuss significant health care provisions in the Build Back Better Act —including giving Medicare the power to negotiate lower drug prices, addressing the Medicaid coverage gap, and much more — to lower costs and improve access to health care.
This transformative act by President Biden and Democrats in Congress will reduce racial disparities in health care, create healthier communities, and strengthen the economy. The health care measures in Build Back Better will lower costs and improve and expand access to lifesaving care. Once passed by Congress and signed into law, the Build Back Better act will be the most significant expansion of affordable health care since the passage of the Affordable Care Act.
VIRTUAL EVENT:
WHO:
U.S. Representative Tom O’Halleran (D-AZ-01)
Dora Vasquez, Executive Director of Arizona Alliance for Retired Americans
Beatriz Morrison, Arizona Patient and Advocate
WHAT: Virtual Press Conference Calling on Congress to Pass Build Back Better Act With Health Care Provisions Including Medicare Negotiations to Lower Drug Costs
WHEN: Tuesday, November 16 at 1:10 PM MST // 3:10 PM EST
WHERE: Register For the Event Here
Washington, D.C. — Today, Senator Patrick Leahy (D-VT) announced his intention to retire after serving for 46 years in the U.S. Senate. During his time on Capitol Hill, Senator Leahy played an essential role in passing and protecting the Affordable Care Act, fighting for a future where every American has access to quality, affordable health care.
“During his long and distinguished tenure in the United States Senate, Senator Leahy was a relentless defender of health care and of the Affordable Care Act,” said Protect Our Care Chair Leslie Dach. “I had the privilege to work for Senator Leahy as a member of his committee staff nearly 35 years ago, and his passion, integrity and commitment to justice and to the country left an indelible mark. America, and all of us who learned by seeing him do his job, owe him a debt of gratitude.”
“Senator Leahy is a true health care champion, and his leadership will be sorely missed in the Senate,” said Protect Our Care Executive Director Brad Woodhouse. “For 46 years, Senator Leahy has fought tirelessly to expand and protect health care for Vermonters and all Americans, including playing a leading role in working to protect the Affordable Care Act at the Supreme Court last year. We wish the senator all the best in his retirement, and we will keep up the fight to ensure health care is a right for every American.”
Washington, D.C. — As Democrats in Congress are on the cusp of passing the Build Back Better Act, new reporting indicates Republican lawmakers are focused on blocking a key provision that lowers prescription drug prices for working families. A pharmaceutical lobbyist revealed to Politico that the Republicans’ “operating plan” is to challenge any provision that would rein in the high costs of prescription drugs. In response, Protect Our Care Executive Director Brad Woodhouse issued the following statement:
“Time and again, Republicans are ready to carry water for Big Pharma. The news of Republican lawmakers challenging any provision that would lower drug prices is just confirmation they are committed to protecting drug company profits until the bitter end. For years, Republicans have protected the broken system that allows drug companies to dictate whatever price they want to charge while millions of families struggle to afford the medications they need to survive. Big Pharma and its Republican allies recognize that the status quo ends with the Build Back Better Act, which works to put an end to outrageous price hikes and gives Medicare the power to negotiate for lower drug prices. Fortunately, President Biden and Democrats in Congress are committed to putting an end to Big Pharma’s greed and finally bringing down drug prices.”
New polling from Navigator Research released yesterday confirms that health care reforms remain the most popular part of President Biden’s Build Back Better Act. The poll found that voters believe that the measures to lower drug prices, bring down insurance premiums, and expand Medicare are the top reasons Congress should pass the Build Back Better Act. Other polling has consistently shown public support for these reforms.
Voters Agree the Best Reasons to Pass Build Back Better Are Medicare Negotiation for Lower Drug Prices, Expanding Medicare, and Reducing the Cost of Health Insurance. When it comes to policies that affect them directly, voters say giving Medicare the power to negotiate, expanding Medicare benefits, and making insurance more affordable are the best reasons to pass the plan.
As Democrats are set to pass the Build Back Better Act next week, Republican lawmakers are fighting to block its most popular provision: giving Medicare the power to negotiate lower prescription drug prices. A closer look at campaign contributions reveals these GOP lawmakers are deeply tied to big drug companies, which explains why Republicans are spreading lies and trying to mislead the American people. In reality, voters across the political spectrum are demanding action to reign in Big Pharma’s greed and lower drug prices now.
Republican House Leader Kevin McCarthy: “Democrats are working overtime to eliminate innovation in new drugs and therapeutics and to allow Washington bureaucrats to decide which drugs seniors can take.” [11/5/21]
FACT CHECK: Medicare drug price negotiation included in the Build Back Better Act allows the federal government to establish fair prices with drug makers, not decide what medications Medicare beneficiaries can and cannot access. A 2017 report from the National Academies of Medicine on lowering costs and protecting innovation concluded, “drugs that are not affordable are of little value.” Build Back Better works to ensure Americans have access to the medications they need at prices they can afford.
PHARMA INFLUENCE: Rep. Kevin McCarthy was the number one recipient of contributions from the pharmaceutical manufacturing industry in 2020, receiving $242,353 in contributions.
House Republican Conference Chair Elise Stefanik: “Under Pelosi’s plan, these companies would be forced to cut research and design spending on new drugs, leading to fewer cures and lifesaving breakthroughs for individuals and families most in need of hope.” [6/4/21]
FACT CHECK: Deciding between lowering drug prices and ensuring innovation is a false choice. Between 2016 and 2020, 14 leading drugmakers spent $577 billion on stock buybacks and dividends—$56 billion more than what was invested in research and development over the same period. One company, Amgen, spent nearly six times more on executive pay, buybacks, and dividends than it did on research and development in 2018.
PHARMA INFLUENCE: In the 2020 election cycle, Rep. Elise Stefanik received $67,956 from the pharmaceutical/health products industry. She has received an additional $6,043 for the 2022 cycle.
Energy & Commerce Ranking Member Rep. Cathy McMorris Rodgers: “More federal command and control over our health care will lead to less innovation [and] fewer cures.” [10/19/21]
FACT CHECK: Research has demonstrated that impacts from lowering drug prices can be successfully mitigated by large pharmaceutical companies reducing their spending on things like stock buybacks and dividends. This is not a make or break issue for the pharmaceutical industry. Drug companies could lose $1 trillion in sales, while maintaining research developments, and still be the most profitable industry, because pharmaceutical companies enjoy profit margins nearly three times the average for the S&P 500. Between 2000 and 2018, 35 large drug companies raked in a combined revenue of $11.5 trillion with a gross profit of $8.6 trillion — far more than other large companies.
PHARMA INFLUENCE: Rep. Cathy McMorris Rodgers has received nearly $60,000 from the pharmaceutical manufacturing industry so far in the 2022 election cycle. Rep. McMorris Rodgers is the number one Republican recipient of contributions from the pharmaceutical manufacturing industry in the 2022 election cycle. So far their contributions have totaled $57,760.
Rep. Devin Nunes: “The Democrats… say that to bring [down] the cost of drugs, we have to take back government control of prices. That we must sacrifice our world-leading innovation in treatments and cures to lower costs at the pharmacy counter for seniors.” [10/14/21]
FACT CHECK: Major drug companies often outsource research and development. A 2019 analysis from Stat found a majority of top-selling drugs from two of the largest drug companies — Pfizer and Johnson & Johnson — were discovered and developed by third parties, such as universities and academic centers. These findings suggest that “a reduction in pharmaceutical revenues would not have the supposed devastating impact on the level of biopharmaceutical innovation.”
PHARMA INFLUENCE: In the 2020 election cycle, Rep. Devin Nunes received $121,283 in total contributions from the pharmaceutical/health products industry. He has received an additional $16,722 for the 2022 election cycle so far.
Sen. Tim Scott: “From curing rare diseases to increasing life spans by many years, recent medical advancements have been nothing short of miraculous for seniors and other at-risk populations. Handing over drug pricing to the federal government would halt that positive momentum and put life saving medications further out of reach for too many Americans.” [10/1/21]
FACT CHECK: Time and again, drug companies hike the prices of drugs without any added benefit to patients. According to Patients for Affordable Drugs, a vial of band name insulin costs about $4 to make but costs $270 and one capsule of the cancer drug Revlimid costs less than a dollar to make but sells for $833.
PHARMA INFLUENCE: The pharmaceutical industry has donated $270,773 to Sen. Tim Scott for the 2022 election cycle. In his career since 2009, Sen. Tim Scott has received nearly $750,000 from the pharmaceutical industry.
***MEDIA ADVISORY FOR TODAY, NOVEMBER 10 AT 12:00 PM EST***
Augusta, ME — Today, Wednesday, November 10 at 12:00 PM ET, state lawmakers and local health care advocates will join Protect Our Care Maine, calling on Congress to immediately pass the Build Back Better Act. The coalition will also discuss significant health care provisions in the Build Back Better Act —including giving Medicare the power to negotiate lower drug prices, addressing the Medicaid coverage gap, and much more — to lower costs and improve access to health care.
This transformative act by President Biden and Democrats in Congress will reduce racial disparities in health care, create healthier communities, and strengthen the economy. The health care measures in Build Back Better will lower costs and improve and expand access to lifesaving care. Once passed by Congress and signed into law, the Build Back Better act will be the most significant expansion of affordable health care since the passage of the Affordable Care Act.
VIRTUAL EVENT:
WHO:
Maine State Senate President Troy Jackson
Ann Woloson, Maine Consumers for Affordable Health Care
Marie Follayttar, Mainers for Accountable Leadership
Sharon Pelletier-Ayer, Bangor Resident
Brad Woodhouse, Protect Our Care Executive Director
WHAT: Virtual Press Conference Calling on Congress to Pass Build Back Better Act With Health Care Provisions Including Medicare Negotiations to Lower Drug Costs
WHERE: Register for the Event Here
WHEN: Wednesday, October 10 at 12:00 PM EST
New reports indicate big drug companies are fighting to weaken the parts of the Build Back Better Act that deliver relief to families and give Medicare the power to negotiate for lower prescription drug prices. As Big Pharma continues its fight against Medicare negotiation, here are four big reasons why America’s families reject drug companies’ claims and are demanding action now:
HIGH PRICES
SHOT: Drug Companies Hiked The Prices Of Nearly 1,000 Drugs In January. Drug companies started 2021 by hiking the prices of hundreds of drugs. In January of 2021, more than 900 brand name drugs experienced price increases, the highest in over a decade. GoodRX found the increases to be the “largest number of increases in years.”
CHASER: Americans Don’t Trust Pharmaceutical Companies On Pricing. Three in four Americans do not trust drug companies to price their products fairly, with the vast majority of Americans identifying the high cost of prescription drugs to be the result of Big Pharma’s greed. 78 percent report pharmaceutical company’s profits are a major factor contributing to the soaring cost of medications.
POWER & INFLUENCE
SHOT: Pharmaceutical Industry Spent Over $250 Million Trying To Kill Medicare Negotiation. In 2021 alone, Big Pharma has spent nearly $263 million on lobbying — devoting three lobbyists to each member of congress.
CHASER: Americans Dislike Pharma’s Influence In Washington. 72 percent of Americans say the pharmaceutical industry has too much influence over the federal government.
INNOVATION LIES
SHOT: Drug Companies’ Stock Buybacks And Dividends Exceed R&D Spending. Between 2016 and 2020, 14 leading drugmakers spent $577 billion on stock buybacks and dividends—$56 billion more than what was invested in research and development over the same period. One company, Amgen, spent nearly six times more on executive pay, buybacks, and dividends than it did on research and development in 2018.
CHASER: Majority Of Americans Don’t Buy Pharma’s Innovation Argument. Roughly 70 percent of Americans are not convinced by the pharmaceutical industry’s argument that drug price negotiation will harm its ability to fund research and development.
SKY-HIGH PROFITS
SHOT: Drug Companies Enjoy The Highest Profits Of Major Industry. Pharmaceutical companies experience profit margins nearly three times the average for the S&P 500. Between 2000 and 2018, 35 large drug companies raked in a combined revenue of $11.5 trillion with a gross profit of $8.6 trillion — far more than other large companies. Drug companies could lose $1 trillion in sales and still be the most profitable industry.
CHASER: Americans Hold Overwhelming Negative Views Of The Pharmaceutical Industry. A 2019 Gallup poll found the pharmaceutical industry to be “the most poorly regarded industry in Americans’ eyes.” The critique of Big Pharma included their seemingly never ending price increases, massive lobbying influence, and role in the opioid crisis, proving distrust of the pharmaceutical industry is far reaching.