May 7, 2024

Big Pharma is trying to sneak big government mandates through Congress that would increase health care costs for American patients, especially seniors, and taxpayers to boost their profits.

The U.S. House Ways and Means Committee is expected to consider one of Big Pharma’s top priorities on Wednesday, a disastrous proposal aimed at banning market-based incentives for pharmacy benefit managers (PBMs) to successfully secure savings on prescription drugs for seniors and the Medicare Part D program.

If implemented, this big government “delinking” mandate would directly intervene in the market to tip the scales in favor of Big Pharma, boosting their profits, and helping politicians on the Left move the country further to a fully government-controlled socialist health care system.

Casey Mulligan, Ph.D., former chief economist for the Council of Economic Advisers in the Trump Administration, concluded this policy would result in health care premium hikes of $13 billion for seniors. He also found federal spending would skyrocket by $10 billion every year.

Meanwhile, Big Pharma would get a $10 billion bailout in the form of higher profits each year.

Joe Grogan, former domestic policy adviser to former President Trump, slammed “delinking” proposals and the disastrous, costly consequences of passing such policies:

“In every other sector of healthcare, Congress is happy to talk about how value-based payments will transform healthcare and save money. Policies that eliminate performance-based payment move the PBM market back towards a fee for service system, increasing costs across the healthcare system. Doctors, pharmacists, and even drug company sales reps are all paid based on performance because it incentivizes desired outcomes. Incentives matter as much in the PBM market as they do for any other industry, and rebate-based payment aligns PBM incentives with those of their payer-clients… Unfortunately, Congressional eagerness to destroy this contractual arrangement punishes patients and taxpayers far more than it would punish PBMs.”

Members of the House Ways and Committee, and all Members of Congress, should reject new government mandates that would result in increased costs for taxpayers and seniors, a giant financial windfall for Big Pharma and major win for the Left.