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Senate Democrats Introduce “Medicaid Saves Lives Act” To Close The Coverage Gap and Extend Coverage To Millions of Americans

Yesterday, Senator Reverend Raphael Warnock (D-GA) along with Senators Jon Ossoff (D-GA) and Tammy Baldwin (D-WI) introduced legislation to create a federal program extending coverage to millions of people stuck in the coverage gap in states where Republicans have refused to adopt Medicaid expansion. For years, Republican lawmakers have waged a war against Medicaid expansion despite overwhelming evidence that it reduces racial disparities in health care, strengthens economies, and saves lives. And despite robust incentives included in President Biden’s American Rescue Plan, Republicans in 12 states have refused to act, underscoring the need for a federal solution. In response, Protect Our Care Chair Leslie Dach issued the following statement:

“Closing the Medicaid coverage gap is a no-brainer for lawmakers looking to profoundly improve health care access in this country. This legislation demonstrates Democrats’ commitment to expanding coverage to millions of people and builds momentum as Congress debates closing the gap in forthcoming infrastructure legislation. We commend Senators Warnock, Ossoff and Baldwin for stepping in after Republican politicians failed to do the right thing for their constituents.” 

COVERAGE

AP: Senators Seek Medicaid-Like Plan To Cover Holdout States. “The bill would mandate a new health insurance plan that looks just like Medicaid offered to residents in holdout states. The plan would require no premiums and only small copayments, while those costs can be much higher for individuals on the marketplace. People can enroll in Medicaid year-round, while marketplace enrollment is typically only in the fall, or when someone’s circumstances change.” [7/12/21]

  • The Bill Would Provide Premium Free Health Access. “The plan would require no premiums and only small copayments, while those costs can be much higher for individuals on the marketplace. People can enroll in Medicaid year-round, while marketplace enrollment is typically only in the fall, or when someone’s circumstances change.” [AP, 7/12/21]
  • The Proposal Would Require No State Contributions. “Sponsors say coverage is already paid for because the original Affordable Care Act included money for all 50 states. States normally shoulder 10% of the cost, but the bill would require no state contributions.” [AP, 7/12/21]
  • The Bill Also Improves Expansion Incentives For States To Expand On Their Own. “The plan also would boost incentives for holdout states to expand on their own. It would raise the federal share of state-federal Medicaid spending by 10 percentage points this coming decade.” [AP, 7/12/21]

The Hill: Senate Democrats Call For Medicaid-Like Plan To Cover Non-Expansion States. “The legislation would mandate the creation of a federal Medicaid “look-alike” program administered by the federal government. It would provide the same essential benefits of Medicaid, and would not charge any premiums or large copayments.” [7/12/21]

Milwaukee Journal Sentinel: Tammy Baldwin Co-Sponsors Bill To Expand Medicaid To Wisconsin And 11 Other Republican-Controlled States. “Baldwin and Georgia’s Democratic U.S. Senators Raphael Warnock and Jon Ossoff introduced a bill Monday to provide health coverage to an additional 4 million Americans — including about 90,000 Wisconsinites — who live in states that did not fully expand Medicaid…the Medicaid Saves Lives Act would direct the Centers for Medicare & Medicaid Services to create ‘a federal Medicaid look-alike program, which would provide the same full, essential benefits of Medicaid, but run and administered at the federal level’.” [Milwaukee Journal Sentinel, 7/12/21]

Wisconsin Examiner: Baldwin, Georgia Senators Propose Federal Alternative For States That Refuse Medicaid Expansion. “The new federally funded and administered program would provide the same benefits as Medicaid expansion offers, but without state involvement. The legislation also would include a financial incentive for states to expand their Medicaid program.” [Wisconsin Examiner, 7/13/21]

WRDW: Warnock, Ossoff Push Medicaid-like Plan For Low-income Americans. “The Medicaid Saves Lives Act would direct the Centers for Medicare & Medicaid Services to create and run a federal Medicaid look-alike program [that] would mirror the full, essential benefits of Medicaid. The legislation would also add to the significant financial incentives included in the American Rescue Plan for states to expand Medicaid, giving these states an additional and extended federal medical assistance percentage increase.” [WRDW, 7/13/21]

Protect Our Care Praises Senator Warnock’s Legislation To Close The Medicaid Coverage Gap

Senator Warnock’s Legislation Would Expand Coverage To Millions, Including 2.4 Million People of Color

Washington, DC — Today, Senator Reverend Raphael Warnock (D-GA) introduced legislation creating a federal solution to expand Medicaid coverage to millions of people stuck in the coverage gap in 13 states where Republicans have refused to expand Medicaid. Protect Our Care Chair Leslie Dach praised the legislation in a statement:

“Medicaid expansion reduces racial disparities in health care, creates healthier communities and strengthens economies. It is the single most important thing Congress can do to address the racial inequities laid bare by the pandemic. If we fail to expand Medicaid, we fail millions of people,” said Protect Our Care Chair Leslie Dach. “Congress must close the coverage gap once and for all. People of color, women, children, older adults, people with disabilities and so many more will benefit from this legislation, and we commend Senator Warnock’s leadership in ensuring better access to care.” 

HEADLINES: House Report Highlights Drugmaker Greed, Need for Congressional Action to Lower Drug Costs

Yesterday, the House Committee on Oversight and Reform released a report detailing how large pharmaceutical corporations have used skyrocketing drug prices to line the pockets of CEOs and investors, while spending billions less on research and development. Specifically, 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. If allowed to continue on this trajectory, these 14 corporations are projected to spend $1.15 trillion on buybacks and dividends between 2020 and 2029 — more than twice of what H.R. 3 is projected to save over the same period. 

The report also revealed that when these drugmakers did invest in research and development, many spent large portions of their budget developing methods to suppress generic and biosimilar competition that would make life saving drugs more affordable for the American people. 

This Oversight Committee’s report underscores the urgent need for Congress to take action now to  pass the Lower Drug Costs Now Act (H.R. 3) to give Medicare the power to negotiate for lower drug prices.. 

HEADLINES:

STAT News: House Democrats Say Pharma Stock Buybacks And Dividends Exceed R&D Spending. “Assuming the same rate of spending going forward, the drug makers are projected to spend $1.15 trillion on buybacks and dividends from 2020 through 2029. This would exceed by more than twice the amount that the Congressional Budget Office projected would be saved over the same period by a House bill – called H.R. 3 – that would allow Medicare to negotiate prices for certain drugs.” [STAT News, 7/8/21]

Kaiser Health News: Drugmakers’ Spending on Stock, Dividends and Executive Pay Exceeds Research, Democrats Say. “Contrary to pharmaceutical industry arguments that large profits fund extensive research and innovation, the major drug companies plow more of their billions in earnings back into their own stocks, dividends and executive compensation. And they can do it largely because Congress has imposed few restrictions on their pricing in the United States — including in the Medicare program, which is not permitted to negotiate drug prices.” [Kaiser Health News, 7/9/21]

The Hill: House Report: Drug Companies Spent More On Buybacks, Dividends Than Research. “Democrats sought to push back on the pharmaceutical industry’s argument that the bill would harm innovation, saying that drug companies could simply cut back on payouts to shareholders, rather than cutting research and development.” [The Hill, 7/8/21]

Bloomberg: Pelosi Slams Drugmaker Buybacks, Wants Price Cuts In Bill. “The House Democratic bill would allow Medicare to negotiate drug prices, and then force drug companies to lower the prices they charge private insurers or impose huge fines on the companies. Pelosi said she wants it to be part of a special budget bill.” [Bloomberg, 7/8/21]

Fierce Healthcare: House Dems’ Report Slams Drugmaker Stock Buybacks As Pelosi Presses To Give Medicare Negotiating Powers. “Democratic leadership slammed drugmakers’ most common defense that pricing reforms will lead to fewer new innovations. ‘How can pharma say with a straight face after spending $577 billion on buybacks and dividends in the last five years that lowering drug prices for Americans will have to come at the expense of research and development?’ said House Speaker Nancy Pelosi.” [Fierce Healthcare, 7/9/21]

Endpoints News: Pelosi Threatens To Slide Drug Pricing Reform Into Biden’s Budget Bill, Rejects Industry Pushback That Innovation Would Suffer. “From 2016 to 2020, the companies spent $56 billion more on stock buybacks and dividends — $577 billion — than on R&D, the report found. The projected number of spending on buybacks from 2020 to 2029 is $1.15 trillion for the same 14 companies.” [Endpoints News, 7/9/21]

New Poll Shows Strong Support for Medicare Negotiation Across Key House Districts

76 Percent of Voters in Key Districts Support Giving Medicare the Power to Negotiate for Lower Drug Prices for All Americans

Washington, DC — A new PPP poll on behalf of Protect Our Care released today shows that voters in 10 key congressional districts whose representatives indicated in a recent letter that they may oppose the Lower Drug Costs Now Act (H.R. 3) overwhelmingly support giving Medicare the power to lower prescription drug prices for all Americans, and they reject the argument that Medicare negotiation would slow down innovation.

The districts surveyed were: Cardenas (CA-29), Correa (CA-46), Peters (CA-52), Murphy (FL-07), Mrvan (IN-01), Auchincloss (MA-4), Gottheimer (NJ-05), Rice (NY-4), Schrader (OR-05), and Strickland (WA-10). In response to the poll’s findings, Protect Our Care Chair Leslie Dach issued the following statement:

“This poll confirms what we already know to be true: drug prices in this country are out of control, and Americans are demanding change. Voters across the political spectrum want Medicare to have the power to negotiate for lower prices and are willing to make their elected officials pay at the ballot box if they fail to act. Voters also overwhelmingly reject Pharma’s big lie that giving Medicare the power to negotiate for lower drug prices will harm innovation.” 

See the full PPP memo and toplines. 

Key Findings:

  • Voters of all political party affiliations agree that prescription drug prices are too high in this country: 88% of Democrats, 89% of independents, and 79% of Republicans think prices are too high.
  • A majority of Republicans (54%) and almost three-quarters (73%) of independents support giving Medicare negotiating power to lower drug prices, along with nearly all (90%) of Democrats.
  • Voters reject the argument that allowing Medicare to negotiate for lower drug prices would slow down innovation. Fewer than 1 in 10 voters support this argument. By a margin of 70% (77-7%), voters would rather “allow Medicare to negotiate with drug companies” than are concerned that it will “undercut drug companies’ ability to innovate and develop new drugs.”
  • Members of Congress risk losing support from voters of all political affiliations if they oppose allowing Medicare to have the power to negotiate for lower drug prices. A third (33%) of Republicans, almost half (45%) of independents, and 60% of Democrats say they would be less likely to vote for them.
  • A large majority (71% of all voters and 72% of voters over the age of 65) strongly support making sure Americans do not pay more for the same prescription drugs than people pay in other countries.
  • A further 70% of all voters and 75% of voters older than 65 strongly support using the savings from lower drug prices to provide hearing, dental, and vision coverage to people on Medicare as well as lower health insurance premiums for millions more.

NEW ADS: Protect Our Care Launches First West Virginia Ad in Seven-Figure Campaign Featuring Patient Who Needs Action to Lower Drug Prices

“Mindy” Will Run on Digital Platforms Statewide

Watch the 30-Second Ad Here

Watch the 15-Second Ad Here

(CHARLESTON, WV)  — Protect Our Care, WV held a virtual press conference Thursday to announce its first digital ad release in West Virginia as part of a seven-figure ad campaign about prescription drug prices. The ad features Mindy, a patient  from Morgantown who is struggling to afford her insulin. In the ad, Mindy tells her personal story and relays the importance of giving Medicare the power to negotiate with drug companies for lower prices for all Americans. 

The ad is part of The Campaign to Reduce Drug Prices, a grassroots and communications campaign calling for comprehensive legislation to lower drug prices. The ad will run on digital platforms, focusing particularly on older Americans, beginning on June 29. Protect Our Care will continue to run ads and host events both nationally and in 13 key states, including West Virginia, throughout the summer.

“Mindy’s story is all too familiar in West Virginia and across the country,” said Protect Our Care Executive Director Brad Woodhouse. “While drug companies are making record profits and raising the price of hundreds of drugs during the pandemic, millions of Americans are forced to choose between paying for the medicines they need to live or paying for food or rent. Drug companies raise the price of existing drugs like insulin year after year, with no reason other than that they can. It’s time for West Virginia lawmakers to do the right thing and support giving Medicare the power to negotiate for lower drug prices. The time to act is now.”

“West Virginians are suffering and dying because of the high cost of prescription drugs,” said Mindy Salango, who is featured in the West Virginia ad. “Our elected officials work for us. We vote them in. We are their constituents. It takes less than two minutes to call your elected officials and tell them to support the American Families Plan and H.R.3. We have to let our elected officials know where we stand.”

“Over 430-Thousand West Virginians have foregone medications to pay for household bills and essential items – with recent polling showing that 74 percent of West Virginia residents say they are concerned about the cost of their medications,” said Dr. Jessica Ice, Executive Director of West Virginians for Affordable Health Care. “Millions of seniors, people living with disabilities, and families are struggling and in desperate need of federal legislation to negotiate drug prices. It’s disingenuous to suggest that pharmaceutical companies cannot conduct research and development with lower prescription drug costs. Taxpayers pay a large proportion of the research that is necessary to produce the drugs that help them live their healthiest life, so to deny a public good, funded by our government, without cost controls is unconscionable.”

Script for “Mindy” (:15): 

I pay about $350 a month for all my supplies in order to keep my blood glucose under control.

The thought of not being able to afford my medication is terrifying.

It’s time for our leaders to act.

Script for “Mindy” (:30): 

I didn’t even know diabetes ran in my family.

When I was first starting out as a diabetic, insulin generally would cost about $25 a month.

Now, I pay about $350 a month for all my supplies in order to keep my blood glucose under control.

The thought of not being able to afford my medication is terrifying.

West Virginians are suffering and dying because of high prescription drug costs.

It’s time for our leaders to act.

You can watch the press conference here, and learn more about how the Lower Drug Costs Now Act (H.R. 3) will make prescription drugs more affordable here.

NEW ADS: Protect Our Care Launches First New Jersey Ad in Seven-Figure Campaign Featuring Doctor Who Wants Action to Lower Drug Prices

“Dr. Shah” Will Run on Digital Platforms Statewide

Watch the 30-Second Ad Here

Watch the 15-Second Ad Here

New Jersey — Protect Our Care New Jersey and health care advocates held a virtual press conference to announce Protect Our Care’s first digital ad in New Jersey as part of a seven-figure ad campaign about prescription drug prices. The ad features Dr. Shah, a provider from New Jersey whose patients are struggling to afford their prescriptions. In the ad, Dr. Shah tells his personal story and relays the importance of giving Medicare the power to negotiate with drug companies for lower prices for all Americans.

The ad is part of The Campaign to Reduce Drug Prices, a grassroots and communications campaign calling for comprehensive legislation to lower drug prices. The ad will run on digital platforms, focusing particularly on older Americans. Protect Our Care will continue to run ads and host events both nationally and in 13 key states, including New Jersey, throughout the summer.

“Dr. Shah’s story about patients forgoing essential medications is all too familiar in New Jersey and across the country,” said Protect Our Care Executive Director Brad Woodhouse. “While drug companies are making record profits and raising the price of hundreds of drugs during the pandemic, millions of Americans are forced to choose between paying for the medicines they need to live or paying for food or rent. Americans should not have to pay two or three times more for their medicines than people in other countries. It’s time for New Jersey lawmakers to do the right thing and support giving Medicare the power to negotiate for lower drug prices. The time to act is now.”

“As an emergency room doctor who specializes in addiction medicine, I meet patients on a regular basis who are experiencing difficulty paying for lifesaving medication,” said Dr. Shah. “One in four New Jerseyans report having to forgo filling a prescription because of skyrocketing costs. Patients shouldn’t be forced to ration medication or delay care because costs are too high. Prescription drug reform is long overdue, and I hope that our members of Congress will help New Jerseyans get the care they need and deserve.” 

Script for “Dr. Shah” (:30):

I’ll never forget the time I was treating a patient in the emergency room.

He said, “Doc, I’ve got heart disease and diabetes.

I’ve got to take medications for them both.

But I’ve only got enough money to take one of them.”

To me it was as clear an illustration of how broken prescription drug pricing in this country has become.

This is a problem that affects us all.

It doesn’t make sense for us to prioritize profits over people and most importantly my patients.

We really need Congress to act.

It’s time to let Medicare negotiate drug prices for all of us.

 Script for “Dr. Shah” (:15):

I was treating a patient in the emergency room.

He said, “Doc, I’ve got heart disease and diabetes.

I’ve got to take medication, but I’ve only got enough money to take one of them.”

We really need Congress to act.

It’s time to let Medicare negotiate drug prices for all of us. 

You can watch the press conference here, and learn more about how the Lower Drug Costs Now Act (H.R. 3) will make prescription drugs more affordable here.

TODAY: Thanks to the American Rescue Plan, Americans Who May Have Lost Their Job During the Pandemic Have More Pathways to Obtain Affordable Health Care

Washington, DC — Starting today, as part of the American Rescue Plan, the Biden administration is providing more options for Americans to obtain affordable health care. Americans who may have lost their job during the pandemic, and are approved to receive unemployment compensation for any week beginning in 2021, may be able to find even lower cost plans and additional savings on out-of-pocket expenses. In response, Protect Our Care Executive Director Brad Woodhouse issued the following statement: 

“This provision of the American Rescue Plan is just the latest example of President Biden steering our country onto the right path. Now Americans who have been impacted from job losses or underemployment during the pandemic will have an easier time getting the health care they need. President Biden has delivered on his promises in his short time in office. In addition to passing the American Rescue Plan, which lowers premiums and expands coverage to millions of Americans, the Biden administration rolled back the Trump administration’s sabotage of the ACA and opened a special enrollment period that has helped nearly one million Americans get covered. These critical policies are only the first steps in President Biden’s plan to ensure that all Americans have access to affordable health care, rein in the skyrocketing prices of prescription drugs, and address racial disparities in our health care system.”

NEW VIDEO: Female Storytellers Reflect on the Impacts of High Drug Prices for Women, Highlight Urgent Need for Reform

Watch the Video Here

Washington, DC – Today, Protect Our Care is releasing a new video as part of Week 4 of the Lower Rx Summer Campaign that highlights how high drug prices impact women disproportionately. Throughout the week, Protect Our Care will host events and release additional research to demonstrate the urgency for reform to bring down drug prices for women, including allowing Medicare to negotiate drug prices for everyone. 

Earlier this week, Protect Our Care released a report showing that women are more likely than their male counterparts to use prescription drugs. Economic and social inequality leave women with lower pay and less wealth, making it harder to afford health care. Women are also more likely to be caregivers, leaving them responsible for purchasing medications for family members. As a result, women are more likely than men to skip needed prescriptions because of cost. This problem is only getting worse: A 2019 Gallup poll found that the gender gap for prescription drug affordability is growing, with 28 percent of women unable to afford a prescribed medication in the previous year, compared to 18 percent of men. 

Remaining Theme Weeks for Lower Rx Summer
Week 4 (June 28): How High Drug Prices Hurt Women
Week 5 (July 5): How High Drug Prices Hurt People with Disabilities
Week 6 (July 12): How High Drug Prices Hurt People of Color
Week 7 (July 19): How High Drug Prices Hurt Small Businesses
Week 8 (July 26): How High Drug Prices Hurt Children

“This video shows the impacts of Big Pharma’s greed, particularly for women who carry more of the burden from the high prices of prescription drugs,” said Protect Our Care Communications Director Anne Shoup. “Americans should not have to pay three times more for the same medicines as people in other countries, and unfortunately more women are finding themselves in the impossible position of choosing between paying for lifesaving drugs and paying for housing or food. As the nation recovers from the coronavirus pandemic, ensuring access to affordable health care and lowering the cost of prescription drugs has never been more critical for American women.”

NEW REPORT: How High Drug Costs Hurt Women

Protect Our Care Releases New Report As Part of Lower Rx Summer

Washington, DC — Today, Protect Our Care is kicking off Week 4 of Lower Rx Summer with a report underscoring how high drug costs hurt women. Throughout the week, Protect Our Care will host events and release additional research to demonstrate the urgency for reform to bring down drug prices for women.

Remaining Theme Weeks for Lower Rx Summer

Week 4 (June 28): How High Drug Prices Hurt Women

Week 5 (July 5): How High Drug Prices Hurt People with Disabilities

Week 6 (July 12): How High Drug Prices Hurt People of Color

Week 7 (July 19): How High Drug Prices Hurt Small Businesses

Week 8 (July 26): How High Drug Prices Hurt Children

Women are more likely than their male counterparts to use prescription drugs. Economic and social inequality leave women with lower pay and less wealth, making it harder to afford health care. Women are also more likely to be caregivers, leaving them responsible for purchasing medications for family members. As a result, women are more likely than men to skip needed prescriptions because of cost. This problem is only getting worse: A 2019 Gallup poll found that the gender gap for prescription drug affordability is growing, with 28 percent of women unable to afford a prescribed medication in the previous year, compared to 18 percent of men. 

“It’s clear the current system is unjustifiable and unsustainable for all Americans, but particularly for women who carry more of the burden from the high prices of prescription drugs,” said Protect Our Care Communications Director Anne Shoup. “Americans should not have to pay three times more for the same medicines as people in other countries, and unfortunately more women are finding themselves in the possible position of choosing between paying for lifesaving drugs and paying for housing or food. It’s time to put an end to Big Pharma’s greed and give Medicare the power to negotiate for lower drug prices.”

In 2019, the House of Representatives passed the Lower Drug Costs Now Act (H.R. 3), historic legislation that would lower drug prices for all Americans. H.R. 3 would save patients over $150 billion and reduce the price of the costliest drugs by as much as 55 percent

Not only does giving Medicare the power to negotiate help patients at the pharmacy counter, but it would save the federal government $500 billion, which could be reinvested to strengthen health care. These savings could help lower premiums, expand coverage, and strengthen Medicare benefits to include hearing, vision, and dental. As the nation recovers from the coronavirus pandemic, ensuring access to affordable health care, and specifically prescription drugs, has never been more critical. 

KEY POINTS

  • Gender disparities restrict prescription drug access. The gender pay gap leaves women with lower incomes and reduced ability to pay for needed medications. More than one in four women who take prescription drugs reported not filling a prescription due to cost. This inequity is compounded for women of color.
  • Prescription drug use is more prevalent among women. More than half of women take prescription medication, making drug costs a regular stressor for millions. With age, medication use increases, disproportionately impacting women who live an average of five years longer than their male counterparts.
  • Big Pharma’s price gouging disproportionately impacts women. Several of the highest grossing prescription drugs are used in the treatment of diseases that disproportionately impact women. 
  • Drug pricing reform would benefit women. 80 percent of Americans understand drug prices are skyrocketing because of Big Pharma’s bottom line, with 75 percent stating they do not have confidence in drug manufacturers to set fair prices. 

Read the new report on How High Drug Costs Hurt Women here.

Biden Administration Revokes Burdensome Medicaid Work Requirements in Arizona, Indiana Continuing Their Efforts to Reverse Harmful Trump-Era Policies

Washington, DC — The Biden administration announced that they are revoking permission for burdensome Medicaid work requirements in Arizona and Indiana, reversing one of the Trump administration’s most harmful policy initiatives. The D.C. Circuit Court of Appeals previously ruled that this cruel and ineffective policy is  “arbitrary and capricious” and fails to advance the purposes of Medicaid. In response, Protect Our Care Executive Director Brad Woodhouse issued the following statement: 

“These burdensome paperwork requirements approved by the Trump administration were meant to boot people off the rolls, which was particularly heartless during the dual public health and economic crises facing Americans. Rather than find ways to rip health care away from Americans during a pandemic, the Biden administration is making health care more affordable and leading the effort to fight the virus. In his short time in office, President Biden has delivered on his promises for the American people by rolling back the Trump administration’s sabotage of the ACA, opening a special enrollment period that has helped nearly one million Americans get covered, and passed the American Rescue Plan which lowers premiums and expands coverage to millions of Americans — a provision he pledged to make permanent.”