TPA Responds to Senate Democrats’ Misguided Drug Pricing Proposal

For Immediate Release                                                                             Contact: Abigail Graham: (202) 417-7235

July 26, 2022                        

Washington, D.C. – The Taxpayers Protection Alliance expressed concern about the prescription drug pricing proposal offered by Senate Democrats.  The legislation gives drug manufacturers a frightening ultimatum of agreeing to a price determined by Medicare on certain medications or face an unrecoverable excise tax. In response, TPA President David Williams offered the following statement:

“The latest proposal from Senate Democrats claims it would let Medicare directly ‘negotiate’ drug prices with manufacturers. In reality, the deceptive scheme would impose harsh price controls on prescription drugs and treatments, preventing the private sector from having a say in the new set price. This is not negotiation.

“If drug manufacturers disagree with the price determined by the government, the excise tax penalty could reach 1,900 percent. The U.S. is a leader in medical innovation, and this proposal is a slap in the face to innovators in the private sector. Instead of targeting drug manufacturers, the government should focus on reigning in Pharmacy Benefit Managers (PBMs) who continue to hike up costs for consumers.

“American taxpayers will suffer the consequences of this negligent plan. TPA urges Congress to fight against this dangerous proposal and reject any policies that would harm innovation.”

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 Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.