Washington, D.C. — Today, the Biden administration announced plans to lower prices for certain high-priced medicines that were developed with taxpayer dollars by creating a policy for using federal “march-in rights” to license other manufacturers sell those drugs for less. The plan includes a new framework for federal agencies to determine when it is appropriate to apply march-in rights authority to a specific high-cost drug that was developed using federal funding. The move is a powerful tool to stop price gouging and boost competition between drug manufacturers to lower prices for patients.
This announcement follows a long line of actions the Biden-Harris administration has taken to reduce prescription drug and health care costs for the American people. The Inflation Reduction Act lowered drug prices for millions of seniors by capping insulin costs at $35 per month, limiting outrageous price hikes, and making essential vaccines free for people on Medicare. Soon, total out-of-pocket drug costs will be capped at $2,000 per year for seniors and lower drug prices from Medicare negotiation will take effect. Together, these measures could save seniors thousands of dollars on their health care. In response, Protect Our Care Chair Leslie Dach issued the following statement:
“This move is an important step as President Biden continues building on his historic victories to lower prescription drug prices for patients. For too long, big drug companies have abused the patent system to block competition and keep prices high for patients, including for drugs developed with taxpayer money. As a result, too many families are kept up at night worrying about how they’ll manage to pay for lifesaving medications while keeping a roof over their heads or paying for groceries. Now, drug companies can no longer rely on tax dollars to do the research to develop a drug and knowing they’ll be able to charge unlimited amounts for that drug. Even as big drug companies throw all of their resources at lawsuits and lobbying to keep their profits high, President Biden has not wavered in his commitment to fight for working families and make prescription drugs more affordable.”
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