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Senate Republican Backs Gov Drug Price Negotiations

By  |  February 25, 2020

Arizona Sen. Martha McSally is introducing a drug pricing bill this week that would allow Medicare to directly negotiate the prices of medicines “that are past their original patent expiration but still maintain a monopoly for that drug.” 

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    McSally’s move is notable as Republicans have traditionally opposed allowing government intervention in drug price negotiations. Only two House Republicans voted for House Democrats’ signature government drug price negotiation bill, H.R. 3 (116), which cleared the lower chamber late last year. 

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    But proponents of government negotiations shouldn’t get too excited just yet. Definitions of “original patent” and “monopoly” will be key to a better understanding of which drugs would be affected by McSally’s plan. Experts see a number of ways in which her plan looks to be weaker than House Democrats plan.

    While H.R. 3 permits negotiation on drugs that lack biosimilar or generic competition regardless of whether they are protected by patents or FDA-granted marketing exclusivity, the time at which drug companies have the most leverage to keep prices high, McSally’s plan would have the government intervene at a later point.

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