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FEDERALhearing transcript
High Impact

Senate Hearing on Sudden Price Spikes for Off-Patent Drugs

Original title: SUDDEN PRICE SPIKES IN OFF-PATENT DRUGS: PERSPECTIVES FROM THE FRONT LINES

January 1, 2022

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The Frame

What this does

This hearing initiates a bipartisan investigation into drug pricing practices that directly impact costs for seniors and federal spending on programs like Medicare and Medicaid.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Seniors

Seniors rely on prescription drugs for health and face potential out-of-pocket cost increases.

Pharmaceutical Companies

These companies are the subject of the investigation regarding their pricing strategies for acquired off-patent drugs.

Federal Government

The government pays $110 billion annually for drugs through programs like Medicare and Medicaid, making it sensitive to price fluctuations.

What changed

Last recorded activity January 1, 2022.

What's next

Next step not available in the current record.

Summary

The Senate Special Committee on Aging held a hearing to investigate why pharmaceutical companies are significantly increasing prices for older, prescription drugs. The committee examined the balance between incentivizing drug innovation and ensuring that essential medications remain affordable for seniors and the federal government.

Key Facts

  • The hearing marks the start of a bipartisan investigation into sudden price increases for off-patent prescription drugs.
  • 90 percent of American seniors take at least one prescription drug per month.
  • Total U.S. spending on prescription drugs is projected to exceed $328 billion in 2015.
  • Individuals are expected to pay $50 billion out-of-pocket for prescription drugs in 2015.
  • The Federal Government is expected to pay $110 billion for prescription drugs through Medicare, Medicaid, and Veterans' Affairs programs.
  • Developing a new drug can take over a decade and cost between hundreds of millions to $5 billion.
  • Only one in seven drugs that reach clinical trials receives FDA approval.

Frequently Asked Questions

What is an 'off-patent' drug?
An drug is a medication for which the original patent protection has expired, typically allowing other manufacturers to produce generic versions.
Why is the Senate investigating these price spikes?
The committee is investigating because certain pharmaceutical companies have acquired older, drugs and subsequently implemented dramatic price increases, impacting patient access and government healthcare spending.

Why It Matters

This hearing initiates a bipartisan investigation into drug pricing practices that directly impact costs for seniors and federal spending on programs like Medicare and Medicaid.

News Coverage

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Sponsors

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Focus on Acquired Drugs

The committee is specifically targeting companies that acquire existing off-patent drugs to raise prices, rather than focusing solely on the cost of developing new drugs.

Connected Entities

personPriscilla HanleyRetiring Majority Staff DirectorMap →
organizationSpecial Committee on AgingU.S. Senate committee conducting the hearingMap →
personErin R. FoxWitness, Director of Drug Information Service at University of UtahMap →
personClaire McCaskillRanking Member of the Special Committee on AgingMap →
personSusan M. CollinsChairman of the Special Committee on AgingMap →
personGerard AndersonWitness, Professor at Johns Hopkins UniversityMap →
personMark MerrittWitness, CEO of Pharmaceutical Care Management AssociationMap →
personDavid W. KimberlinWitness, Professor at University of AlabamaMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment20
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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