New analysis by the Center for American Progress estimates that as a result of the H.R. 3 negotiation process, some diabetics could save more than $700 on an annual supply of certain types of insulin. Moreover, negotiation could bring down the net price for other types of drugs—including expensive treatments for cancer and multiple sclerosis—by thousands per month. Reform is desperately needed. Today, pharmaceutical companies set excessive prices that they increase over time in order to maximize profits. Prices for many drugs have skyrocketed, and nearly 1 in 4 Americans currently taking prescription drugs find them difficult to afford. Some people struggling to afford medication for chronic illnesses even turn to drug rationing in desperation, which can be lethal. In fact, a recent study found that 1 in 4 patients with diabetes ration their insulin in response to rising prices.
The American public overwhelmingly agrees that it is time to allow the government to negotiate with pharmaceutical companies: 85 percent of Americans support this tactic to reduce prices for Medicare and private insurance. Yet despite the policy’s popularity, and President Trump’s campaign promise to “negotiate like crazy” to reduce drug prices, the current administration opposes H.R. 3—the only bill that includes drug price negotiation. It should come as no surprise that the Trump administration is backpedaling on its claimed commitment to reduce drug company profits; some of the administration’s key players on health policy built their careers at pharmaceutical corporations.