How Joe Biden Is Fighting Big Pharma

Joe Biden has now started to negotiate drug prices with pharmaceutical companies in America. He intends to drive the prices of drugs down in the US in order to possibly save the federal budget. He also wants to try to save senior citizens money, as seniors last year spent 3.4 billion dollars on pharmaceutical drugs. The White House has released a list of 10 crucial drugs that are being negotiated. These drugs include blood thinners and diabetes medications. Apparently, 9 million Americans have paid high prices for these listed drugs.

Many of these senior citizens cannot afford to pay the drug prices and are looking to the government for help. Some have to choose between groceries and their widely needed prescription drugs. For example, drugs that treat diabetes can be very important. Since diabetes creates a life-threatening threat and can possibly cause blindness, Blood thinners are also important as they help with medical treatment and processes. Blood thinners also help to remove clots that may cause strokes.

This deal will also help the federal government save some money. As the federal government might save 25 billion dollars a year from prescription drug costs. The government has been trying to get prescription drug companies to lower the cost of drugs. This long battle has only sided with the prescription drug companies. Many pharmaceutical companies have lobbied against the government when it comes to prescription drug pricing. From 2021 to 2022, pharmaceutical companies will have spent 700 million dollars on lobbying.

Biden, however, is cracking down on the decision to lower negotiated pricing for prescription drugs. This is an option for pharmaceutical companies, but there are heavy consequences for drug companies that do not comply. If pharmaceutical companies reject the negotiated terms, then they face heavier taxes, such as excise taxes. Pharmaceutical companies that reject the plan can face up to a 95 percent excise tax. Also, some pharmaceutical companies may be removed from welfare altogether.

Pharmaceutical organizations have reacted to Joe Biden’s plan, like the PhRMA. The president of PhRMA, Stephen J. Ubyl, said that the government

“rushed process focused on short-term political gain rather than what is best for patients,”

The Biden administration is facing eight lawsuits from pharmaceutical companies. Some pharmaceutical companies say that the government does not have the right to negotiate drug prices. Others say that Joe Biden is intruding on the free market. Currently, America has the biggest pharmaceutical industry in the world. Joe Biden is not backing down on his decision, and this action will have a lasting effect for a while.

Negotiations will extend until 2024, and lower-cost pharmaceutical drugs will reach Medicaid by 2026. This seems like a victory for Joe Biden, but many Americans are still skeptical. Investors who invest in pharmaceutical companies are clashing over the future of the pharmaceutical industry. How will Joe Biden’s decision affect innovation? If the government wants certain drugs manufactured at a certain time, then how much money can pharmaceutical companies invest in other important drugs? Such drugs that help to impede or prevent certain cancers? The deals have not been negotiated yet, so we will have to wait!

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