U.S. Rep. Tom Reed (R-NY) this week offered a bipartisan proposal that would amend the Social Security Act to require that pharmaceutical manufacturers publicly justify their price increases.
“This is a great step toward transparency and accountability in the cost of drugs,” said Rep. Reed.
The congressman on April 3 cosponsored the Stopping the Pharmaceutical Industry from Keeping Drugs Expensive (SPIKE) Act of 2019, H.R. 2069, which he said would rein in the skyrocketing costs of prescription drugs.
“We care about ensuring hardworking people are being treated fairly,” Rep. Reed said on Wednesday. “Many Americans with pre-existing conditions face exorbitant costs at the pharmacy counter and deserve to know why they are paying more for their medication.”
U.S. Rep. Steven Horsford (D-NV), who sponsored H.R. 2069, added that too many American families must choose between refilling a medication and putting food on the table. “The SPIKE Act will expand upon Nevada’s list of covered drugs and help us lower drug costs by holding pharmaceutical companies accountable for price gouging,” he said.
If enacted, H.R. 2069 would require drug manufacturers starting in 2021 to report detailed information to the U.S. Secretary of the Department of Health and Human Services (HHS) on certain drugs if the prices exceed specific thresholds, according to Rep. Reed’s office.
For example, under the bill, if a drug price increased by more than 10 percent or $10,000 over one year; 25 percent or $25,000 over three years; or if it had a launch price above $26,000, then the manufacturer would be required to submit a justification explaining the causes for such price increases to the HHS secretary, according to the summary of H.R. 2069.
H.R. 2069 has been referred to both the U.S. House Energy and Commerce Committee and the U.S. House Ways and Means Committee for consideration.