[Congressional Record Volume 164, Number 160 (Thursday, September 27, 2018)]
[Extensions of Remarks]
[Page E1325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           RISING DRUG PRICES

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                       HON. EDDIE BERNICE JOHNSON

                                of texas

                    in the house of representatives

                      Thursday, September 27, 2018

  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today 
regarding the alarming rise in prescription drug costs in this country.
  Earlier this year, the President claimed that drug companies would be 
announcing ``massive'' voluntary drug price cuts.
  In fact, an Associated Press analysis of brand-name prescription drug 
prices shows it's been business as usual for drugmakers, with far more 
price hikes than cuts. The AP found that over the first seven months of 
the year, there were 96 price hikes for every price cut.
  As the AP said in its story, drug pricing is far from transparent. 
Manufacturers typically set high list prices but then negotiate rebates 
and discounts with prescription benefit managers, to get preferential 
insurance coverage for their products.
  Many consumers never see the list price, though rising drug prices 
generally put pressure on insurers to raise rates. Patients with high 
deductible or no insurance often get stuck being charged the full list 
price.
  In addition, the Republican tax bill is being used by the big 
pharmaceutical companies to buy back shares in its companies to 
increase its stock prices. The tax bill is increasing our government 
debt, taking money from all Americans in order to enrich hedge funds, 
other Wall Street investors and top drug company executives, but not 
helping the patients that depend on those drugs.
  We need to implement changes that will bring down drug prices.
  One way is that prescription drugs that meet a test for an 
unconscionable price increase will be subject to new investigative and 
enforcement action by a new ``price gouging'' enforcer.
  National spending on prescription drugs is on the rise. Prescription 
drug prices increased an average of 12.6 percent in 2014 and 10 percent 
in 2015. In 2015, 16.7 percent of health care spending in the U.S. went 
to prescription drugs.
  The government needs to be given the authority to negotiate drug 
prices. Medicare is not allowed to negotiate with drug companies about 
their product. The government is the largest buyer of most products and 
the General Services Administration currently negotiates whenever the 
government is buying a product and puts it on the schedule for all 
government procurement officers to use. But not prescription drugs. 
This is a huge giveaway for the drug industry and that needs to end.
  Now is not the time to line the pockets of pharmaceutical CEOs while 
Americans are suffering from high prescription drug costs. It is time 
to be innovative with our health care and support the working men and 
women who need the help to live a healthy life.

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