By Blair Childs, Senior Vice President of Public Affairs, Premier Inc.
Members of the Premier healthcare alliance commend House Energy and Commerce Committee Chairman Greg Walden (R-OH), Ranking Member Frank Pallone (D-NJ) and members of the Health Subcommittee for its hearing investigating the FDA’s generic drug approval process.
Premier believes that managing escalating prescription drug costs requires greater competition. To achieve this, we need to reduce the enormous approval backlog at of ANDAs at FDA. Until this is accomplished, Congress must pass the Lower Drug Costs through Competition Act (HR 749). This bill will explicitly direct the FDA to fast track drug approvals for new competitive entrants when there are no alternatives in the market. We also believe that HR 749 should be improved by directing FDA to act on applications when there are two or fewer competitors.
With very few exceptions, dramatic price increases that are crippling health system budgets are the fallout of competitive failures that allow monopoly players to raise prices and charge whatever the market will bear. This has caused enormous problems for health systems who operate on a fixed Medicare payment level. It’s time to unleash the forces of competition and remove the regulatory barriers that allow generic monopolies to exist.
To read Premier’s letter endorsing HR 749, click here.
– Blair Childs, Senior Vice President of Public Affairs, Premier Inc.