Van Hollen, Rush, Kilroy, And FTC Discuss "Pay For Delay' Drug Settlements That Cost Consumers $3.5 Billion A Year

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Van Hollen, Rush, Kilroy, And FTC Discuss "Pay For Delay' Drug Settlements That Cost Consumers $3.5 Billion A Year

Congressman Chris Van Hollen (D-MD), Congressman Bobby Rush (D-IL), and Congresswoman Mary Jo Kilroy (D-OH) joined Federal Trade Commission Chairman Jon Leibowitz today to discuss the need to end "pay for delay' drug settlements. These agreements, in which the brand company pays its generic competitor not to compete, delay the entry of lower-cost generic drugs on the market and increase the cost of prescription drugs for years. The House health insurance reform bill includes a provision to stop these agreements, and the Members joined Chairman Leibowitz in urging the inclusion of this critical provision in the final legislation. According to the FTC report being released at the event, this will save American consumers approximately $3.5 billion annually and lower the overall spending of the federal government on prescription drugs.

"The FTC's report makes it abundantly clear that we must end the collusive agreements between brand-name and generic drug manufacturers, because currently everybody wins except the consumer," said Congressman Van Hollen. "Ending this collusion will save consumers $3.5 billion dollars every year. We are committed to reducing health care costs, ensuring accountability, and improving access."

"The market manipulations the FTC's report outlines should not exist in our country. Their report documents, in chilling detail, what I believe is an unholy alliance between a small but powerful set of drug manufacturers. The quest by brand-name and generic drug companies to extract excess profits at the expense of America's low- and middle-income consumers is beyond obscene. This sort of behavior, which prevents vulnerable consumers from accessing the life-saving benefits of affordable prescription drugs, should be eliminated from America's health care system. The provision I've written does just that," said Congressman Rush.

Congresswoman Kilroy said "American consumers and employers have been hit hard by double-digit inflation in the cost of prescription drugs to the point where too many can't afford needed medication. We can save Americans money by using generics and I am shocked to learn that drug manufacturers have been scheming to "pay for delay' to keep affordable prescription medicines from us. This payola scandal is an outrage. Both parties--the brand drug companies who pay to delay and the generic drug companies who have taken the pay-off are hurting the health of America. This practice must be stopped."

"This legislation would stop drug companies from continuing to vacuum billions of extra dollars out of consumers' pockets every year, as they wait in vain for generic drugs that should be lowering the cost of medications, but are instead kept off the market," Chairman Leibowitz said.

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