D.C. Dispatch: Miller-Meeks, Grassley introduce bills on drug costs
Members of Iowa's congressional delegation proposed legislation aiming to address high prescription drug prices. (Photo illustration by Clark Kauffman/Iowa Capital Dispatch)
Members of Iowa's congressional delegation have introduced legislation they say will help lower drug costs.
U.S. Congress has largely not met this week, with most of the attention in national politics centering on President Donald Trump's moves to close the U.S. Department of Education and militarize a part of the U.S.-Mexico border. Still, Iowa's federal legislators introduced several measures this week, including proposals dealing with the cost of pharmaceuticals.
Rep. Mariannette Miller-Meeks reintroduced the Delinking Revenue from Unfair Gouging (DRUG) Act Tuesday, a bill focused on pharmacy benefit managers (PBMs), the third-party businesses that negotiate prescription drug prices between drug manufacturers, health insurance companies and pharmacies. The Iowa representative also introduced the measure in 2o24.
Miller-Meeks' proposal would require PBMs to charge a flat fee for their service in negotiating prices on a certain drug instead of charging using a percentage of the drug price. The current practice of charging based on a percentage of the drug's costs incentivizes PBMs to promote the use of higher-cost medicines, according to a news release from Miller-Meeks' office, which 'takes money away from patients.'
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
'Pharmacy benefit managers (PBMs) have excessive influence over the prices patients pay at the pharmacy counter,' Miller-Meeks said in a statement. 'Local Iowa pharmacies are closing due to greedy PBM practices, impacting proximity and access to medications for Iowans. The DRUG Act will put downward pressure on prescription drug prices and insurance premiums by removing the incentive for PBMs to drive up the list price of medications.'
Many pharmacists have called for action to restrict certain business practices by PBMs, which they say are raising drug costs and limiting the ability to fill prescriptions. Iowa state lawmakers are also considering legislation that would place limits on some PBM actions.
Miller-Meeks has advocated for Congress to ban certain PBM practices, like 'patient steering,' encouraging or requiring patients to use certain affiliated pharmacies instead of a pharmacy of their choice and 'spread pricing,' where a PBM charges a higher cost for a drug than what is reimbursed to the pharmacy — practices that are also a focus of the Iowa legislation.
Charles Crain, managing vice president of policy of the advocacy group the National Association of Manufacturers, praised the legislation as a way to help manufacturing employers provide workers affordable health care coverage.
'PBMs increase health care costs by driving up prescription drug list prices, forcing patients to pay more at the pharmacy counter and making it more difficult for manufacturers to offer affordable health care benefits,' Crain said in a statement. 'Manufacturers commend Rep. Miller-Meeks and her colleagues for re-introducing the DRUG Act, which will rein in PBMs operating in the commercial market by removing their perverse incentive to maximize their own profits at the expense of manufacturers and manufacturing workers.'
In the Senate, U.S. Sen. Chuck Grassley co-introduced a bill that would attempt to stop pharmaceutical manufacturers from attempting to shut out competitors by 'product hopping.'
'Product hopping' refers to practices by some pharmaceutical companies to coercively move patients using a branded drug that has an expiring patent to a new patented drug in an effort to stop patients from moving to a generic version of the original product. According to a news release from Grassley, some manufacturers use tactics like destroying the inventory of their old product, raising its price or stating it is unsafe in attempts to discourage people from using the drug.
'Under this practice, it is difficult to switch patients to the cheaper generic when the market protections for the earlier drug expire,' the news release stated. 'This abuse of the patent system forces patients to continue paying high costs for a drug that is substantially similar to their old one for many years to come.'
Grassley, alongside Sens. John Cornyn, R-Texas, Richard Blumenthal, D-Connecticut and Dick Durbin, D-Illinois, introduced the 'Drug Competition Enhancement Act' Monday that would make product hopping' an antitrust violation. Companies engaging in this practice could face enforcement action from the Federal Trade Commission, including being brought to court.
The Iowa Republican said the bipartisan measure would help bring down drug prices by preventing companies from engaging in anticompetitive practices.
'One of my top priorities in the Senate is reducing the cost of prescription drugs,' Grassley said. 'Our bill will bring much needed transparency to drug pricing by cracking down on product hopping and giving Iowans more access to lower-cost generic drugs.'
SUPPORT: YOU MAKE OUR WORK POSSIBLE
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
an hour ago
- Business Upturn
ELV FRAUD ALERT: Elevance Health, Inc. Investors are Reminded of Ongoing Securities Fraud Class Action — Contact BFA Law by July 11 Legal Deadline (NYSE:ELV)
NEW YORK, June 22, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Elevance Health, Inc. (NYSE: ELV) and certain of the Company's senior executives for potential violations of the federal securities laws. If you invested in Elevance you are encouraged to obtain additional information by visiting Investors have until July 11, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Elevance common stock. The case is pending in the U.S. District Court for the Southern District of Indiana and is captioned Miller v. Elevance Health, Inc., et al. , No. 25-cv-0092. Why was Elevance Sued for Securities Fraud? Elevance provides health insurance plans. This includes contracting with states to administer Medicaid benefits. States routinely review Medicaid eligibility, but during COVID, the federal government paused this process. The pause ended in 2023, and states resumed redetermining Medicaid eligibility. During the relevant period, Elevance represented that it was closely monitoring the cost trends associated with the redetermination process and that the rates Elevance was negotiating were sufficient to address the risk profiles of those patients staying on Medicaid. As alleged, in truth, the redeterminations caused a significant increase in the acuity and utilization of Elevance's Medicaid members. What's more, the shift occurred to a degree that was not reflected in Elevance's rate negotiations or in its financial guidance for 2024. The Stock Declines as the Truth is Revealed On July 17, 2024, Elevance stated that it was now 'expecting second-half utilization to increase in Medicaid' and that it was 'seeing signs of increased utilization across the broader Medicaid population.' On this news, the price of Elevance stock declined $32.21 per share, or nearly 6%, from $553.14 per share on July 16, 2024, to $520.93 per share on July 17, 2024. Then, on October 17, 2024, Elevance announced its Q3 2024 financial results, revealing that its missed consensus earnings per share ('EPS') expectations by $1.33, or 13.7%, 'due to elevated medical costs in [its] Medicaid business.' On this news, the price of Elevance stock declined $52.61 per share, or nearly 11%, from $496.96 per share on October 16, 2024, to $444.35 per share on October 17, 2024. Click here if you suffered losses: What Can You Do? If you invested in Elevance you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses. Submit your information by visiting: Or contact:Ross Shikowitz [email protected] 212-789-3619
Yahoo
a day ago
- Yahoo
Mark Cuban Corrects Elizabeth Warren As She Slams JNJ, PFE For Higher Prices And Zero Taxes On Big Pharma: 'PBMs Corrupt Healthcare'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. A heated debate over the U.S. healthcare system erupted on X, pitting billionaire entrepreneur Mark Cuban against Sen. Elizabeth Warren (D-Mass) over the root causes of soaring drug prices. What Happened: The clash, unfolding as of Friday, has reignited discussions on Pharmacy Benefit Managers (PBMs) and Big Pharma's tax practices, with the Senate poised to address reform amid rising public scrutiny. Enter Cuban, the Dallas Mavericks owner and founder of Cost Plus Drugs, who fired back with a pointed correction. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — In a post quoting Warren, Cuban argued that PBMs—not Big Pharma—are the true culprits behind inflated drug prices. 'PBMs corrupt healthcare,' he wrote, explaining that these intermediaries control formularies and manipulate prices to maximize rebate revenue, with three major PBMs negotiating over 90% of rebates for commercial insurance plans. Warren, in her post, had blamed pharmaceutical giants like Johnson & Johnson (NYSE:JNJ) and Pfizer Inc. (NYSE:PFE) for charging Americans the 'highest drug prices in the world' while paying 'zero dollars in federal taxes.' Citing data from her Senate Finance Committee role, Warren highlighted how these companies, alongside AbbVie Inc. (NYSE:ABBV), Amgen Inc. (NASDAQ:AMGN), and Merck & Co Inc. (NYSE:MRK), have exploited tax loopholes from the 2017 Tax Cuts and Jobs Act to shield billions in profits. 'Republicans want to make it worse. I'm fighting back,' she declared, sharing a CNBC headline and urging action against what she calls a 'rigged tax system.' Why It Matters: Cuban has been a critic of the healthcare system, saying that it should be simple. According to him, it's become overly complicated by big insurance companies and PBMs. These groups, he says, act as middlemen, controlling not just the costs but also the accessibility of care. He blames PBMs for lack of transparency, inflated specialty drug prices, rebate distortion, formulary restrictions, and 'Sh–ing on' on independent pharmacies. Some significant firms engaged in the PBM business listed in the U.S. include;Stocks YTD Performance One Year Performance CVS Health Corp. (NYSE:CVS) 51.15% 9.57% Cigna Group. (NYSE:CI) 14.54% -6.95% UnitedHealth Group Inc. (NYSE:UNH) -39.11% -36.60% Meanwhile, here is how some pharmaceutical sector ETFs have performed;Pharma ETFs YTD Performance One Year Performance VanEck Pharmaceutical ETF (NASDAQ:PPH) 1.69% -4.48% iShares US Pharmaceuticals ETF (NYSE:IHE) -0.49% -1.85% Invesco Pharmaceuticals ETF (NYSE:PJP) -3.23% -1.64% SPDR S&P Pharmaceuticals ETF (NYSE:XPH) -4.06% 2.61% KraneShares MSCI All China Health Care Index ETF (NYSE:KURE) 20.55% 22.94% First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH) -5.44% -6.27% Direxion Daily Pharmaceutical & Medical (NYSE:PILL) -23.49% -14.63% The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were mixed in premarket on Friday. The SPY was down 0.30% at $595.67, while the QQQ was 0.015% higher at $529.07, according to Benzinga Pro data. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo courtesy: Shutterstock This article Mark Cuban Corrects Elizabeth Warren As She Slams JNJ, PFE For Higher Prices And Zero Taxes On Big Pharma: 'PBMs Corrupt Healthcare' originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Chicago Tribune
a day ago
- Chicago Tribune
Former EPA administrator, activists react to 'One Big Beautiful Bill'
As President Donald Trump touts a bill currently making its way through Congress as a win for the public, a former regional Environmental Protection Agency administrator is prepared to see devastating cuts to the office that could negatively impact human health. 'It's proposing severe cuts to both the scientific work that EPA's Office of Research and Development does and to the agency as a whole,' said Debra Shore, former administrator for EPA Region 5. 'It would severely reduce the agency's ability to fulfill its mission of protecting public health and the environment.' As the 'One Big Beautiful Bill' Act has passed the U.S. House of Representatives and moved to the Senate, activists nationwide have worried about the consequences. Shore said it's heartbreaking to see public servants at the EPA go through these cuts, especially as the administration tries to make the 'One Big Beautiful Bill' seem like a win. 'I have never worked with a group of such smart, devoted professionals who had a shared sense of mission as EPA employees,' Shore said. 'I know that's the case across the agency. … They could be working for far higher salaries in many cases, but they are dedicated to the foundational mission of the EPA, which is to protect public health and the environment.' On Tuesday and Wednesday, the EPA posted on Facebook, saying it 'delivers for all Americans.' 'One Big Beautiful Bill is putting American workers, taxpayers and families first,' the EPA's Tuesday post said. 'Under (Trump), the U.S. can unleash American energy while ensuring we have the cleanest air, land and water on (Earth).' The bill eliminates hundreds of billions of dollars in Green New Deal tax credits, repeals former President Joe Biden administration's electric vehicle mandates, and opens federal lands and waters to oil, gas, coal, geothermal and mineral leasing, according to the EPA's Tuesday post. According to the Wednesday post, the bill also 'streamlines onerous permitting processes,' refills the Strategic Petroleum reserve and 'delivers certainty to energy producers, saves and creates energy jobs, lowers energy costs for families.' A spokesperson for Sen. Todd Young, R-Indiana, provided a statement about the bill Friday. 'Senator Young continues to have conversations with his colleagues and stakeholders about improving the House-passed bill and addressing our nation's debt and deficit challenges,' said Leah Selk, spokesperson for Young. Representatives for Sen. Jim Banks, R-Indiana, did not respond to a request for comment Friday. Within the bill, the White House would also have the ability to cut federal agencies and reduce workforce, Shore said. 'This is just an utter abrogation of Congress' authority and power,' Shore said. 'It requires an annual report of planned reorganizational moves, and it also streamlines the ability of any future president to rebuild federal agencies because of some of the language in it.' Susan Thomas, director of policy and press for Just Transition Northwest Indiana, said it's concerning that EPA is treating the 'One Big Beautiful Bill' like a win, especially on social media platforms that are easily accessible. 'No one can take any information for granted anymore,' Thomas said. 'You must do your own research with trusted sources because the amount of greenwashing that's coming down is so dangerous. … This is becoming increasingly difficult, but it's more important than ever.' Thomas and Gary Advocates for Responsible Development board member Carolyn McCrady are both worried about the effects that environmental justice communities will face if the bill passes the Senate. McCrady expects public health to worsen as a result of EPA rollbacks. An October report from Industrious Labs found that most residents in Gary are in the top 10% of U.S. residents most at-risk for developing asthma and at-risk of low life expectancy. In 2020, Indiana had a lung cancer rate of 72.5 per 100,000 people, with Lake County as one of the state's counties with the highest cancer mortality rates, according to the American Lung Association. A 2016 JAMA Network report also found Gary as one of the top five U.S. cities with the lowest life expectancy at one point. 'I think people are going to be sicker faster,' McCrady said. 'I don't think people will be able to be served in the medical community in the same way, because in Indiana, millions of people are going to lose their health insurance because of the Medicaid cuts.' Although McCrady believes the EPA cuts are devastating, she isn't surprised to see them included in 'One Big Beautiful Bill.' Cuts will continue to put communities like Gary at a greater disadvantage, McCrady said. Thomas also believes that Northwest Indiana's environmental justice communities will struggle as a result of the 'One Big Beautiful Bill.' 'They've already stripped away all of the environmental justice provisions that had taken years to recognize and acknowledge and to start to put in place,' Thomas said. 'This is just a very sad state that we're in.'
