Lower Drug Costs Now Act of 2019

Floor Speech

BREAK IN TRANSCRIPT

Mr. TONKO. Mr. Chair, I yield myself as much time as I may consume.

Despite the passage in 2010 of the Biologics Price Competition and Innovation Act through the Affordable Care Act, which created the modern pathway for bringing biosimilar drugs to market, consumers in the United States are still not reaping the cost-saving benefits that a full, mature biosimilars market would provide. As of May, only 19 biosimilars had been approved by the FDA, and many of those that have been approved are not on the market for a number of reasons.

Economics 101 teaches us that, when more competition is introduced into the market, prices come down. We have seen this with the overwhelming success of the generic pharmaceuticals market here at home, and we are seeing it with biosimilars in other parts of the globe.

In Europe, for example, the introduction of biosimilar competition for Humira led to the brand manufacturer dropping the price by more than 80 percent in some countries.

Unfortunately, here in the United States, biosimilars still face very low market share and utilization, despite the fact they could generate much-needed savings for patients and for taxpayers.

If we want to continue to meaningfully lower drug costs for American patients, Congress can, and should, do more to create a policy environment that is ripe for greater biosimilar adoption.

That is the underlying rationale behind my amendment, which is based on legislation I introduced with Congressman Bob Gibbs, known as the Star Ratings for Biosimilars Act.

This amendment would require the Department of Health and Human Services to incorporate into the existing Star Ratings system for Medicare Advantage and part D plans a measure that evaluates how plans promote access to biosimilar drugs.

In creating such a measure, HHS would look at things such as coverage on a plan's formulary, tier placement, cost sharing, and other utilization management techniques.

By evaluating plans on biosimilar access, this amendment would motivate health plans to improve performance and implement changes to improve access to biosimilars, creating a policy environment ripe for further biosimilar development. A similar measure has already been adopted by the Senate Finance Committee as they worked through their prescription drug legislation.

I have heard from some criticism that the Star Ratings system has traditionally not been used for this type of measure. To that, I would contend that star ratings have already been used in several ways to influence plan behavior and improve plan quality, such as evaluating plans on how well they provide cancer screenings, care coordination, and Medicaid management, for example.

All of these metrics are designed to incent plans into behavior that will improve plan transparency and beneficiary health.

Likewise, access to affordable medications has significant implications for beneficiary health, as patients will abstain from needed medications if costs are simply too high. The CBO score for the underlying legislation makes this connection crystal clear.

By evaluating plans on biosimilar access, we are ensuring that patients have the information they need that will allow them to live healthier lives.

In closing, Mr. Chair, I would simply urge my colleagues to support this important amendment that will help lay the groundwork for greater biosimilar adoption and continue to lower drug costs for patients, obviously a common cause for each and every person in this Chamber.

BREAK IN TRANSCRIPT

Mr. TONKO. Mr. Chair, we have no further speakers on this side, and I am prepared to close.

Mr. Chair, I respect the opinions of Mr. Walden. We have worked in a bipartisan fashion on several issues before in Energy and Commerce, but I believe the claim that this would increase costs is simply false. Like the Senate Finance Committee that is moving forward with this proposition on biosimilars, we believe it is a way to lower costs.

To date, the nine biosimilars accessible to patients are at an average discount of 28 percent. It is simply a false claim that a biosimilar would not launch at a lower price.

Certainly, we must do better. We are reminded constantly that we can do better and we must do better. As the namesake of this legislation had constantly implored, Representative Elijah Cummings always knew that we must score for the public. That is why we must pass this amendment.

Mr. Chair, I yield back the balance of my time.

BREAK IN TRANSCRIPT

Source