Statement: White House Council Misleads Americans in Advance of House Consideration of Prescription
Updated: Mar 2, 2020
Yesterday, the White House Council of Economic Advisers (CEA) released a statement claiming that H.R.3, the Lower Drug Costs Now Act, could result in fewer drugs hitting the U.S. market and higher costs to the U.S. economy. The CEA report contradicts a report from the non-partisan experts at the Congressional Budget Office (CBO), released in October, which estimated that the Lower Drug Costs Now Act could lower prescription drug costs by 55 percent. Notably, CEA’s report is based in part on a 2017 paper funded by the Pharmaceutical Research and Manufacturers of America (PhRMA), the drug manufacturers’ lobby association. The paper was published by Precision Health Economics, a consultancy with clients including several prescription drug corporations and co-founded by White House CEA Acting Chairman Tomas Philipson.
Casey Wilkinson, Executive Director of Piedmont Rising, issued the following statement in response:
“This White House report is a political document masquerading as economic analysis. It is intended only to protect the drug companies’ ability to continue making runaway profits from prescription drugs and provide cover to elected officials who oppose reforms that would actually reduce drug prices, including giving Medicare the power to negotiate with pharmaceutical companies for lower prices.
The truth is that while nearly one out of every four Americans cannot afford necessary prescription drugs, and one in eight Americans report they are rationing their prescription drugs, having to choose between life-saving medication or food on their table, drug corporations continue to make record-breaking profits.
North Carolinians need their lawmakers to support legislation that increases transparency in prescription drug pricing, caps out-of-pocket costs for consumers, and gives Medicare the power to demand lower prices from pharmaceutical companies.”