Physicians Ask Senate Finance to Address Kickbacks, Other Factors Driving Up Drug Costs

Citing unaffordable costs of common, essential drugs such as insulin, the Association of American Physicians and Surgeons (AAPS) provided testimony for the Jan 29 Senate Finance Committee hearing on high drug prices.

The answer is not a government-run pharmaceutical industry, but rather unleashing the “competitive market forces that provide abundant options and push prices down in almost every other sector of the American economy.”

Specific solutions recommended by AAPS include:

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End the safe harbor to the Medicare Anti-Kickback Statute. A safe harbor created for Group Purchasing Organizations (GPOs), which was supposed to lower prices, was extended to Pharmacy Benefit Managers (PBMs). Diabetes patients are one group particularly hard hit by the collusion between these middlemen and manufacturers. For example, lower cost generic insulin drugs are excluded from plan formularies, when brand name manufacturers agree to pay larger “rebates” to PBMs.   

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Address anti-competitive manufacturer tactics that delay introduction of generics. The FDA under the leadership of Scott Gottlieb, M.D., has made welcome progress in increasing the number of lower cost generic drugs available to American patients. In 2018, the agency approved 971 generics, more than in any other year. AAPS urges reintroduction of the “Creating and Restoring Equal Access to Equivalent Samples Act of 2018” (CREATES Act, which aims to promote drug price competition by making it easier for medicines whose patents have expired to be sold as less expensive generic versions.)

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Cut the red tape impeding innovative care models. Independent physicians are providing tremendous savings to patients with in-office dispensing of prescriptions that cut out the cost increases caused by middlemen like PBMs.  For example, a 72-year-old female patient with multiple chronic conditions purchases all nine of her medications through a Direct Primary Care office for $14.63/month. Through her Medicare “coverage” her cost would be $294.25 per month. Reintroduction and passage of the Direct Primary Care Enhancement Act would increase patient access to this promising delivery model by simply clarifying that Health Savings Accounts can be used for these arrangements.

AAPS thanks the Committee for considering this subject despite intense pressure to preserve the status quo from special interests that benefit from high prices.[IA]

?WASHINGTON, D.C.­—The Independent Insurance Agents & Brokers of America (IIABA or the Big I”) announced that FOX News Sunday host Chris Wallace will be a featured speaker at the annual Big I” Legislative Conference.

On Friday, May 10, Big I” President & CEO Bob Rusbuldt will sit down with FOX Wallace during the General Session Breakfast to discuss the current political landscape and how it affects issues important to independent agents and brokers. Wallace has a decades-long journalism career. He reported from the ABC News desk as a senior correspondent for Primetime and 20/20 and as an anchor on the longest running show on television, NBC News’ Meet the Press. Wallace has won every major broadcast news award, including three Emmys, the Peabody Award and the Dupont-Columbia Silver Baton Award.

With divided government now that Democrats control the House of Representatives, combined with one of history’s most unique administrations, Chris Wallace will be able to offer insights on the inner workings of Washington,” says Bob Rusbuldt, Big I” president & CEO. Chris deals with all of the decision makers and power players. I look forward to talking with him about issues such as trade policy, the economy, immigration policy, taxes, investigations, the 2020 presidential race, Medicare for all and the future of health insurance, and many more political issues of the day.”

The Big I” Legislative Conference is the insurance industry’s best-attended, most effective legislative meeting. This year’s event will take place May 8-10 at the Renaissance Washington DC Downtown Hotel.

The Legislative Conference is an opportunity for Big I” members to discuss important issues with their congressional representatives. Top issues this year include the NFIP, TRIA, data security/privacy, crop insurance, health care and insurance regulatory reform.

Journalists interested in attending can register online or contact Katie Butler for media registration.