- Josh Hawley’s bills, called the Fair Prescription Drug Prices for Americans Act and the Ending the Prescription Drug Kickback Act of 2023 respectively, establishes a penalty for pharmaceutical companies that sell drugs in the United States at prices beyond their average costs across the peers of the United States in the Group of Seven major industrial countries. Additionally, the bills will collectively ban prescription drug rebates in both federal and private health plans.
- The first bill says the retail list prices for drugs sold in the U.S. may not exceed the average costs they are sold for across Canada, France, Germany, Italy, Japan and the United Kingdom. Severe fines would be levied against drugmakers who cross this established threshold.
- The second bill would remove safe harbor protections for prescription drug rebates that drug manufacturers and pharmacy benefit managers (known as PBMs) now have under a federal anti-kickback statute.
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Senator Josh Hawley, R-Mo, states: “My view — and I’ve had this view for years now — is that American patients should not be bearing the cost of cheap drugs everywhere else in the world,” Hawley said in an interview. “And these pharma companies shouldn’t be able to make massive profits off the back of Americans who desperately need many of these drugs and products in order to live… So, my pitch to my fellow Republicans is listen, we need to be for people, not for pharma,” he said. “We need to be about helping patients be able to get affordable prices. And I have no interest in helping pharma further fleece these consumers to line their own pockets. And by the same token, I don’t have any interest in helping the big insurance companies keep their sweetheart deals with pharma, where they get these kickbacks for negotiating cheaper drug prices … and then passing on higher prices to consumers," he continued. "I think we should end that, too.”
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