Every day, Louisianans struggle to pay for their prescription medications. The ever-rising prices of prescription medications plunge many of us into debt. Americans wonder why they simply cannot afford life-saving drugs in the richest country in the world. The US prescription drug market is deeply broken.
These prices disproportionately hurt older Americans, as well as Black and Latino patients, both of whom rely more on prescription drugs for their health. The most essential drugs, the ones that treat cancer, diabetes, and heart disease, can cost hundreds of thousands of dollars per year. It is unacceptable that while the vast majority of older Americans are prescribed medicine, only 1 in 5 have filled a script in the past year. The most common reason why patients skip their refills is high drug prices. American lives are at risk, which is why 87% of older voters want Congress to act to lower drug prices. Congress must heed their wishes.
To fix the problem, Congress must first address the root cause. Indeed, the common trope that greed motivates unfair prices rings true. Even so, what allows drug companies to charge so much? Well, Big Pharma can charge far more in America compared to other countries because they’ve cornered the market. Big Pharma exploits the American legal system to keep competitors off of the market, which largely explains the exorbitant prices Louisianans pay for the drugs they need to survive.
When drug companies develop new medications, they receive patents. These patents forbid anyone else from producing the same drug for a period of time – a monopoly. Patent law remains essential to America’s market economy because patents incentivize companies to innovate. However, patent law should only allow these companies to enjoy a monopoly for a certain period of time. After that set period ends, the patent should cease and competitors should be able to develop lower-cost generic and biosimilar drugs that are just as effective but often much more affordable for patients.
However, Big Pharma uses malicious tactics to extend their monopolies almost indefinitely. For example, they slightly alter a drug’s chemical formula and claim they’ve developed a new drug, thereby securing an extended monopoly for essentially the same treatment. Tactics like this allow drug companies to unfairly concentrate market power.
Not only do these tactics keep prices high, but they also discourage Big Pharma companies from innovating. The number of new drugs placed on the market annually has declined since the 1960s. The decline has been particularly worse since the 1990s – we’ve seen an over 50% decrease – because of our lack of antitrust enforcement. It’s common sense: why innovate without competitors?
Congress must crack down on the anticompetitive practices of Big Pharma to help lower drug prices in Louisiana.
Right now, there are bipartisan bills in the works that do just that. Congress must come together to pass legislation this year, because Louisianans just can’t take it anymore.
Love him or hate him, Senator Bill Cassidy is a bull in the Senate on this issue. He’s been a tough negotiator who both stands his ground and works across the aisle. He’s gone after Big Pharma before, and he must do so again. Let’s hope Sen. Cassidy will help regulate Big Pharma and lend a hand to Louisianans in-need.
Matt Mackowiak is the president of Potomac Strategy Group, a Republican consultant, a former Bush administration official, a Bush-Cheney re-election campaign veteran and a former press secretary to two U.S. Senators.