U.S. Senators Michael Bennet (D-Colo.) and James Lankford (R-Okla.), members of the U.S. Senate Committee on Finance, introduced the Prescription Drug Supply Chain Pricing Transparency Act to require the Government Accountability Office conduct a study to increase transparency in the flawed drug pricing supply chain.
“Lifesaving medicine is still unaffordable for far too many Americans. This bill is an important step toward increasing transparency in the drug pricing supply chain and making high-quality health care more accessible for every American,” said Bennet.
“I’ve said it many times: Congress can’t fix what we can’t see, and the dark alley of prescription drug pricing is an area that needs as much sunlight as possible,” said Lankford. “A lack of information and reluctance on the part of those involved in pricing prescription drugs have made it difficult for Congress to provide oversight and make positive change. Our bill helps Congress better understand the realities of drug pricing scheme so we can better untangle the messy, complicated system in favor of better patient access and affordable prices for patients at the pharmacy counter.”
The United States spends more on prescription drugs on a per capita basis than any other country. In Colorado, prescription drug costs are rising faster than other types of health services. At the same time, relationships in the pharmaceutical drug supply chain between pharmacy benefit managers (PBMs), health insurance plans, pharmacies, pharmaceutical manufacturers, and other actors have grown increasingly complex. More transparency will help identify which parts of the supply chain contribute to inflated drug prices.
Specifically, the Prescription Drug Supply Chain Pricing Transparency Act will require the Government Accountability Office to conduct a study and submit a report to Congress about the ways the current pharmaceutical drug supply chain structure incents drug manufacturers, PBMs, insurance companies, and other actors to price drugs higher. Bennet is working to bring down the cost of prescription drugs for Coloradans. Last Congress, Bennet helped secure enhanced health insurance premium tax credits and the requirement for Medicare to negotiate drug prices in the Inflation Reduction Act (IRA). He first proposed both policies as part of his Medicare-X public option bill. This Congress, Bennet joined U.S. Senator Jeanne Shaheen (D-N.H.) in reintroducing the Improving Health Insurance Affordability Act to make permanent the premium tax credits in the IRA.
In April, Bennet reintroduced the Ensuring Timely Access to Generics Act to increase competition for generic drugs and lower drug costs for Americans. In May 2023, the Senate Health, Education, Labor, and Pensions Committee unanimously voted to advance the Ensuring Timely Access to Generics Act to the Senate Floor. In March, Bennet and his colleagues successfully urged Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure to release the names of common Medicare Part B medications that will be subject to price reductions this year. Seniors may save between $1-$449 per average dose for drugs ranging from blood thinners to antibiotics.
The text of the bill is available at here.
A summary is available at here.
Source: Senator Michael Bennet’s Office
