Fact Sheet

On Thursday, President Biden will travel to Virginia to join U.S. Representative Abigail Spanberger (D-VA-07) and discuss the urgent need to drive down drug prices for the American people. Democrats are continuing to fight tirelessly to pass the legislation to give Medicare the power to negotiate, rein in Big Pharma’s greed, and lower prescription drug prices for millions of people across the country. Voters across the political spectrum support Democrats’s drug pricing measures and are demanding lawmakers get this done.  

The Build Back Better Act is a historic plan that will bring down prescription drug prices so people can afford the medicines they need. Build Back Better gives Medicare the power to negotiate lower drug prices, ensures no senior pays more than $2,000 a year for their prescriptions, and protects every American from egregious price increases for the drugs they need to survive. No matter what form the final bill takes, it is clear that Build Back Better’s drug pricing measures must remain fully intact. 

For 20 years, big drug companies have been able to dictate the price that Americans pay for prescription drugs and 2022 has been no exception. In January alone, Big Pharma hiked the prices of more than 740 drugs. The medications seeing the biggest increases are the very drugs already raking in blockbuster profits for drugmakers, with 11 of the 15 top selling drugs experiencing large increases. A shocking 93 percent of the drugs with growing price tags saw price hikes higher than the projected rate of inflation for 2023. This shameless greed by Big Pharma means patients can’t afford what they need to stay healthy, but that status-quo ends with Build Back Better. Reining in Big Pharma’s greed will reduce racial inequities in health care, improve the health and well-being of seniors and people with disabilities, strengthen families, and save lives. 

Here Are The Three Main Ways Build Back Better Will Drive Down Drug Prices For Patients: 

1) Giving Medicare The Power To Negotiate Lower Drug Prices. For nearly 20 years, Medicare has been banned from negotiating the price of prescription drugs, and Big Pharma has been able to dictate prices while Americans pay three times more for their medications than people in other countries. Under Build Back Better, Medicare will be empowered to negotiate prices for select drugs purchased at the pharmacy counter and administered at a doctor’s office. Beginning in 2025, 10 drugs, in addition to insulin, will be negotiated with that number increasing to 20 drugs in 2028 and into the future. Drug companies who refuse to come to the negotiating table will be subject to an excise tax.

2) Protecting Insulin Access For Millions With Diabetes. Starting in 2023, insulin products will also be negotiated. Under Build Back Better, all Americans with insurance will see their insulin co-pays capped at $35 each month. Currently, as many as one in four of the 7.5 million Americans dependent on insulin are skipping or skimping on doses, which can lead to death. The insulin provisions in Build Back Better are expected to provide savings to millions of insulin users across the country.

3) Putting An End To Runaway Price Increases. Build Back Better stops Big Pharma from raising prices faster than the rate of inflation. For example, Humira, a medication commonly used to treat rheumatoid arthritis, is one of the nation’s highest revenue generating drugs, raking in $21 billion in sales in 2019. AbbVie, Humira’s manufacturer, has hiked the price of Humira more than 25 times, including in January 2022 when it raised its cost by 7.4 percent, bringing the price up a staggering $441, creating a cost of $6,409 for a single month’s supply. This cap would apply to all Americans, and is essential to stop arbitrary price increases on essential medications. Over the past 20 years, price increases for brand-name drugs in Medicare Part D have risen at more than twice the rate of inflation.

4) Capping Out-Of-Pocket Spending For Seniors. Seniors with serious conditions like cancer, multiple sclerosis, and rheumatoid arthritis could save thousands of dollars on prescriptions under the Build Back Better Act. Medicare Part D out-of-pocket costs for prescription drugs will be capped at $2,000 per year. The redesign of Medicare Part D will also allow out-of-pocket spending to be smoothed over the course of the year, so patients are not forced to pay the entirety of their out-of-pocket cost at the beginning of the year.

Senator Ron Johnson’s record on health care and fighting COVID-19 is as abysmal as they come and disqualify him for another term in the U.S. Senate. Over the years, Ron Johnson voted to rip health care coverage from 416,600 Wisconsinites and strip protections from 2.4 million Wisconsinites with pre-existing conditions. Senator Johnson opposes provisions before Congress that would lower drug prices, expand coverage, improve care for seniors, and level the playing field for working families — policies that are supported by Wisconsonites from all walks of life. Senator Johnson has repeatedly spread disinformation about vaccines and undermined our response efforts. Republicans like Senator Johnson are completely out of touch with the economic and health worries that keep families up at night as they continue to put industry profits ahead of their constituents. Wisconsin voters are sick and tired of Ron Johnson’s dangerous antics.

Blocking Health Care And Relief for Wisconsinites

Senator Johnson Is In The Pocket Of Big Pharma. It is no wonder why Senator Johnson is so opposed to Build Back Better, which includes historic provisions to rein in pharmaceutical companies and lower the cost of prescription drugs for millions of Americans. Since taking office in 2011, Ron Johnson has received $250,464 in contributions from pharmaceutical PACs and executives. 

Senator Johnson Was A Leader In Efforts To Repeal The Affordable Care Act. In 2017, Senator Johnson co-sponsored the Cassdiy-Graham-Heller-Johnson bill which would have repealed the Affordable Care Act, and was widely considered to be the worst of the repeal efforts. Had Senator Johnson been successful, his bill would have dismantled Medicaid expansion, eliminated the Affordable Care Act tax credits, capped and cut Medicaid funding — permanently transforming the program into a per capita program, and caused millions of Americans to lose coverage and protections for pre-existing conditions. 

Senator Johnson’s Reckless Policies Would Have Harmed Wisconsinites. Senator Johnson repeatedly voted to rip coverage from 416,600 Wisconsinites who gained coverage under the Affordable Care Act. His actions would have also stripped protections from 2.4 million Wisconsinites with pre-existing conditions.

Senator Johnson Has Been Front And Center On The Most Outlandish ACA Attacks. In 2014, Senator Ron Johnson filed a lawsuit challenging a rule allowing lawmakers and their staff to continue to receive a government contribution toward premiums, but only if they enroll in a specific ACA plan. The Justice Department asked that the lawsuit be dismissed due to the fact Johnson was not “directly injured” by the regulation and therefore had no legal standing to sue. Johnson continued with the suit despite pleas from the Republican delegation in his own state to stop the scarade. Johnson also disclosed that he was planning to use his campaign account to raise funds for the suit, clearly demonstrating the political motive driving his actions. 

Even After The Republican Party Moved On, Senator Johnson Refused To Stop ACA Repeal Efforts. Senator Johnson has repeatedly demonstrated that he is an extremist within his party, refusing to move on after defeat. After Republicans could not muster the votes to repeal the Affordable Care Act in 2017, Senator Johnson said he remained hopeful that the Cassidy-Graham-Heller-Johnson bill would pass. 

Senator Johnson Prioritized Eliminating Protections For People With Pre-Existing Conditions. Senator Johnson was determined to eliminate one of the most popular aspects of the Affordable Care Act — its protections for millions of Americans with pre-existing conditions — arguing that insurance companies should not be forced to cover people regardless of their health status. Johnson even went so far as to claim covering individuals with pre-existing conditions would collapse the health care system, stating, “We know what caused premiums to increase…th[e] guaranteed issue [of health insurance] collapses markets.”

Senator Johnson Has Fought To Cut Health Care For The Elderly, Disabled, And Children. In 2017, Senator Johnson claimed that Medicaid expansion put at risk “traditional Medicaid for the elderly, disabled and children.” The real threat to traditional Medicaid existed in the years-long Republican repeal efforts which worked to gut the program and turn it into a “per capita” program. The nonpartisan Congressional Budget Office found the Senate repeal bill Johnson backed would have cut Medicaid by $756 billion over the following decade, and another estimate found it would have cut Medicaid by more than $2 trillion over the following 20 years, or more than one-third. 

Senator Johnson Voted Against The American Rescue Plan And Relief For Thousands Of Wisconsin Families. Alongside all of his Republican colleagues, Ron Johnson voted against the American Rescue Plan, historic legislation which provided measures to expand coverage and to dramatically lower health care costs for thousands of Wisconsin families. In addition to providing critical pandemic relief, the ARP lowers premiums for people purchasing coverage through the marketplaces and expands access to financial assistance for more middle-class families.  

Senator Johnson Tried To Blame The Opioid Crisis On The Affordable Care Act. Stooping to a new low, Senator Johnson claimed that Medicaid expansion created the opioid epidemic. Despite the fact that the CDC declared the opioid crisis an epidemic in 2011, three years prior to Medicaid expansion, Johnson attempted to draw a nonexistent connection between affordable health care and increased substance abuse. 

COVID-19 Misinformation

Senator Ron Johnson Downplayed Vaccines Against Natural Immunity, Asking Why We Think We Science Could Make Something Better That Works Better Than God. The latest in a series of highly bizarre and scientifically dubious comments from Senator Johnson came last week on the Vicki McKenna radio show. Senator Ron Johnson asked, “Why do we think that we can create something better than God in terms of combating disease? Why do we assume that the body’s natural immune system isn’t the marvel that it really is?” When the comments drew sharp criticism, Senator Johnson responded, saying “I won’t apologize for being in awe of creation or for the assumption that immunity from COVID infection might outperform immunity created in a lab. Unfortunately, the vaccines aren’t as safe or effective as we hoped.”

Senator Johnson Falsely Claimed Unvaccinated People Are Being Put Into ‘Internment Camps’. In yet another disingenuous attempt to misrepresent COVID-19 safety measures, Senator Johnson recently said “I’m going to actually utilize my own freedom, my own health autonomy, and I’m going to choose not to get the vaccine, and now we are demonizing those people. Around the world, they’re putting them basically into internment camps. What is going on?’…When Johnson was asked to clarify this claim, his office said he was referencing a COVID-19 quarantine site in Australia that requires residents returning from international travel to quarantine for two weeks and produce a negative COVID-19 test. 

Senator Ron Johnson Has Refused To Get Vaccinated And Continues To Spread Disinformation. Senator Johnson has become notorious over the course of the pandemic for making outrageous, misleading, and blatantly false claims about COVID-19, even going so far as to accuse public health experts of withholding information about the ‘dangers’ of COVID-19 vaccines from the American people. “But the information he provides in media appearances, ostensibly to fill in the gaps, is highly suspect. Take this interview with a conservative radio host in Wisconsin. The senator was asked how many people have died after getting vaccinated against the coronavirus, which causes the disease covid-19. He cited data from the Vaccine Adverse Event Reporting System (VAERS) and suggested the death count was above 3,000. The Centers for Disease Control and Prevention (CDC) says this data does not establish cause and effect between coronavirus vaccinations and reported deaths. A range of experts on immunology told [The Washington Post] Johnson was misusing the data and exaggerating the known risks of getting the shot.” 

Last week, the Centers for Medicare & Medicaid Services announced an increase in Medicare Part B premiums, due to the out of control rise in prescription drug prices. All Medicare beneficiaries will feel the impacts of this increase, which will make it more expensive to visit a physician and receive outpatient care, all because Republicans in Congress refuse to empower Medicare to negotiate the cost of life saving medication for seniors. This simply cannot continue. The Build Back Better Act will put a check on Big Pharma’s price gouging, lower costs, and ensure seniors are able to access the prescription drugs they need to live full and healthy lives. 

Big Pharma’s Greed Forces Medicare To Increase Premiums

Aduhelm Alone Increases Medicare Premiums For Seniors. Premiums for 56 million Medicare Part B beneficiaries will be impacted due to one drug company’s greed and the outrageous price of Aduhelm, Biogen’s controversial new Alzheimer’s drug. Aduhelm’s $56,000 annual precise tag has forced Medicare to establish a contingency reserve in the event Medicare decides to cover the medication. 

Cost-Sharing Requirements For Seniors Will Increase. Aduhelm’s astronomical price will expose six million Medicare beneficiaries with no supplemental coverage to the full brunt of Medicare’s cost-sharing requirements. This cost sharing responsibility for Part B medications, like Aduhelm, will be particularly painful for the 90 percent of Medicare Advantage beneficiaries with plans requiring 20 percent coinsurance rates for in-network providers, with that figure surging to 50 percent for medications provided out-of-network. 

Lowering Costs & Keeping Big Pharma In Check

High Drug Prices Cause Higher Premiums. The excessive cost of prescription drugs is felt far beyond the pharmacy counter. High medication costs are reflected in higher insurance premiums for seniors on Medicare, individuals purchasing insurance on their own, and for employers providing coverage to their workers.

Build Back Better Will Lower The Cost Burden On Seniors. By giving Medicare the power to negotiate prescription drug prices and preventing drug companies from raising the cost of medications faster than inflation for all Americans, Build Back Better will lower the cost of health care across the board. When drug prices skyrocket, premiums increase. By requiring the pharmaceutical industry to play fair, Medicare will serve as a check on arbitrary and extreme prices set by drug makers.

Republicans In The Pocket Of Big Pharma Are Blocking Reform

Republicans Teaming Up With Pharma To Kill Drug Provisions. In 2021 alone, Big Pharma has spent nearly $263 million on lobbying — devoting three lobbyists to each member of congress. This strategy has worked on Republicans, now promising to “challenge anything and everything” in order to protect drug companies’ profits while millions of families struggle to afford the medications they need to survive.

Republicans Continue To Carry Water For Pharma. While Republicans are busy peddling Big Pharma’s lies, Democrats are working to make prescription drugs affordable. Medicare drug price negotiation included in the Build Back Better Act allows the federal government to establish fair prices with drug makers, not decide what medications Medicare beneficiaries can and cannot access. Republicans are attempting to scare the public with false statements about restricting innovation and government interference in health care, but the American people know better. Polling has clearly demonstrated that giving Medicare the power to negotiate drug prices is one of the most popular provisions in Build Back Better.

Build Back Better is a historic plan that will bring down prescription drug prices so people can afford the medicines they need. The Build Back Better bill gives Medicare the power to negotiate lower drug prices, ensures no senior pays more than $2,000 a year for their prescriptions, and protects every American from egregious price increases for the drugs they need to survive. 

For 20 years, big drug companies have been able to dictate the price that Americans pay for prescription drugs and Americans pay three times more than people in other countries. That status-quo means patients can’t afford what they need to stay healthy, but that status-quo ends with this plan. Reining in Big Pharma’s greed will reduce racial inequities in health care, improve the health and well-being of seniors and people with disabilities, strengthen families, and save lives. 

Here Are The Three Main Ways Build Back Better Will Drive Down Drug Prices For Patients: 

1) Giving Medicare The Power To Negotiate Lower Drug Prices. For nearly 20 years, Medicare has been banned from negotiating the price of prescription drugs, and Big Pharma has been able to dictate prices while Americans pay three times more for their medications than people in other countries. Under Build Back Better, Medicare will be empowered to negotiate prices for select drugs purchased at the pharmacy counter and administered at a doctor’s office. Beginning in 2025, 10 drugs, in addition to insulin, will be negotiated with that number increasing to 20 drugs in 2028 and into the future. Drug companies who refuse to come to the negotiating table will be subject to an excise tax.

2) Capping Out-Of-Pocket Spending For Seniors. Seniors with serious conditions like cancer, multiple sclerosis, and rheumatoid arthritis could save thousands of dollars on prescriptions under the Build Back Better Act. Medicare Part D out-of-pocket costs for prescription drugs will be capped at $2,000 per year. The redesign of Medicare Part D will also allow out-of-pocket spending to be smoothed over the course of the year, so patients are not forced to pay the entirety of their out-of-pocket cost at the beginning of the year. Insulin co-pays for all Americans with insurance will also be capped at $35 each month.

3) Putting An End To Runaway Price Increases. Build Back Better stops Big Pharma from raising price increases faster than the rate of inflation. For example, Humira, a medication commonly used to treat rheumatoid arthritis, is one of the nation’s highest revenue generating drugs, raking in $21 billion in sales in 2019. AbbVie, Humira’s manufacturer, has hiked the price of Humira 27 times, including in January 2021 when it raised its cost by 7.4 percent. This cap would apply to all Americans, and is essential to stop arbitrary price increases on essential medications. Over the past 20 years, price increases for brand-name drugs in Medicare Part D have risen at more than twice the rate of inflation.

H.R. 3 Would Save Individual Patients Thousands Of Dollars On Costly Medications 

Giving Medicare the power to negotiate is the single most effective way to bring down drug prices and reduce costs for patients at the pharmacy counter. In addition to saving taxpayers $500 billion, the Democrats’ proposal would reduce the prices for the costliest medications by as much as 55 percent – saving patients an estimated $158 billion. An analysis from the Center for American Progress found that, in addition to saving patients thousands on expensive treatments for conditions like cancer and multiple sclerosis, H.R. 3 would help lower the cost of insulin for some diabetics by more than $700 annually.

The facts speak for themselves — consumers will benefit from drug price negotiations. It is time to put an end to Big Pharma’s fear mongering once and for all. A recent Committee on Oversight and Reform report found that between 2016 and 2020, 14 drug manufacturers spent a whopping $577 billion on stock buybacks and dividends. This figure is $56 billion more than what was spent on research and development over the same period, proving that high drug prices are funding profits, not innovation. 

KEY POINTS:

• Drug price negotiations will save Americans billions. Drug price negotiations would drastically lower the cost of prescription drugs for consumers. Analyses confirm empowering the federal government to negotiate would reduce negotiated drug prices for the costliest medications by as much as 55 percent – saving patients an estimated $158 billion. 
• Patients are at the whim of Big Pharma. Under our current system, patients are completely at the mercy of pharmaceutical corporations, with nearly one in four Americans taking prescription drugs experiencing difficulty affording their medications.
• The vast majority of Americans support drug price negotiations. More than eight in ten Americans support the federal government negotiating lower prescription drug prices for Medicare recipients.

Negotiations Are Good For Consumers. The Lower Drug Costs Now Act (H.R. 3), would dramatically reduce the cost of prescription medications by empowering the federal government to negotiate prescription drug prices. Analyses from the nonpartisan Congressional Budget Office and the CMS Office of the Actuary confirmed the bill would reduce negotiated drug prices by as much as 55% – saving patients an estimated $158 billion over the next several years.

Americans Demand Negotiations Now. 79 percent of Americans say the cost of prescription drugs is “unreasonable”, with a recent Harvard-POLITICO poll finding 87 percent of respondents found drug pricing reform to be “extremely important”. When it comes to empowering the federal government to negotiate lower prescription drug prices for Medicare recipients, 86 percent of Americans are in support.

Nearly One In Four Americans Have Difficulty Affording A Prescribed Medication. Nearly one in four Americans taking prescription drugs have difficulty affording their medications, with 29 percent reporting not taking their medicines as prescribed at some point in the past year because of the cost. Those most severely impacted make less than $40,000 a year and have medication costs over $100.

Americans Live In Fear Of Drug Price Increases. Nearly nine in ten Americans feared that drug companies would use the pandemic as an excuse to raise prices. With seemingly endless price increases and drug manufacturers putting profits over people, it’s no wonder three in four Americans don’t trust Big Pharma to do the right thing and set fair prices for prescription drugs. 

High Prescription Drug Prices Perpetuate Racial Disparities. On average, Black, Hispanic, and Latino Medicare beneficiaries without drug coverage use 10 to 40 percent fewer prescription drugs than their white counterparts being treated for the same health issues. Inability to afford needed drugs is likely a critical element in why Black individuals suffer from many chronic illnesses at a greater level of severity. A prescription price increase of just $10 can result in reduced ability to access prescription drugs, often with fatal consequences.

Patient Assistance Programs Are Inaccessible For Those Most In Need. Many pharmaceutical corporations fund independent drug assistance programs. These deceptive programs function under the guise of providing needed medications, but in reality, tend to cover expensive, brand name drugs, even when cost-effective generic alternatives are available. Even more shocking is that 97 percent refused assistance to those who needed it most, individuals without insurance.

Protect Our Care Releases New Fact Sheet As Part of Lower Rx Summer

Today, Protect Our Care is kicking off Week 5 of Lower Rx Summer with a fact sheet underscoring how high drug costs hurt people with disabilities. Throughout the week, Protect Our Care will demonstrate the urgency for reform to bring down drug prices for people with disabilities. 

In June, Protect Our Care announced Lower Rx Summer as part of The Campaign to Reduce Drug Prices. Lower Rx Summer consists of themed weeks of action to demonstrate the urgent need for legislation to lower drug prices principally by giving Medicare the power to negotiate with drug companies for lower prices for all Americans. 

Remaining Theme Weeks for Lower Rx Summer

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

Week 9 (August 2): Expanding Medicare Benefits—Hearing, Vision, And Dental

Fact Sheet: How High Drug Prices Hurt People With Disabilities 

High prescription drug costs disproportionately hurt the 61 million Americans living with one or more disabilities. The drug pricing crisis across the United States wreaks havoc for millions, particularly those making less than $40,000 per year. Approximately 85 percent of those on Medicaid with a disability are living on annual incomes of less than $25,760, making the surge in drug costs particularly painful. Not only do prescription drug costs create significant financial hardship, but increasing costs have the capacity for deadly outcomes. A 2021 study found that the smallest increase in out-of-pocket medication costs created alarming drops in patients taking drugs as instructed and tragic increases in mortality rates.

Despite these disastrous outcomes, pharmaceutical corporations have continued ramping up the cost of prescription drugs at the detriment of people with disabilities. Big Pharma has been particularly ruthless towards those suffering from rheumatoid arthritis. Humira, a commonly used RA medication manufactured by AbbVie, has experienced 27 price increases and Medicare beneficiaries using the drug paid an estimated average of $5,471 in annual out-of-pocket costs in 2019.

This outrageous profiteering at the expense of people with disabilities is simply unacceptable. These practices demonstrate the urgent need for Congress to pass the Lower Drug Costs Now Act (H.R. 3), which would provide the federal government the necessary power to negotiate prescription drug prices. Negotiation would save the government and patients nearly $600 billion on prescription drug costs, which could be reinvested to strengthen health care for millions of Americans. There is also action that could be taken today by the 12 states refusing to accept Medicaid expansion. If Republicans quit their needless blockade, a minimum of 500,000 Americans with disabilities would be able to enroll in Medicaid and access essential healthcare. The time for bold action is now.

KEY POINTS

• Americans with disabilities are struggling to afford rising drug costs on fixed incomes. 61 million Americans have a disability, with millions covered by Medicaid and Medicare. Many of these individuals live on a fixed income, with nearly 85 percent of nonelderly Medicaid beneficiaries with disabilities living on less than $25,760 per year.

• Soaring out-of-pocket costs for specialty drugs hurt people with disabilities. In January of 2021, drugmakers hiked the price of nearly 1,000 drugs, while Americans with disabilities were left struggling to afford needed medications. A recent study found that increasing out-of-pocket costs by just $10 produced a 33 percent increase in mortality. 
• The time to rein in drug manufacturers and expand coverage is now. Medicaid expansion in the remaining holdout states would provide coverage for at least 500,000 people with disabilities. When living in an expansion state, these individuals are 6 percentage-points more likely to be employed. No one should be forced to live below the FPL in order to have access to lifesaving medical coverage.

For the full fact sheet, click here.