Culinary, PhRMA oppose bill to extend lower Medicare negotiated drug prices to all Nevadans

Dr. Helene Nepomuceno, a chief surgery resident in Las Vegas, saw a patient with a diabetic wound who only had $12 in their bank account and couldn’t afford antibiotics. Weeks later he returned to the hospital to get his foot amputated. 

That story was among many shared by Nevadans impacted by high prescription drug costs, who spoke during a press conference Monday before attending a legislative hearing on a measure designed to reduce these prices. 

The Assembly Commerce and Labor Committee on Monday heard AB 250, dubbed the Affordable Medicine Act, which aims to build on provisions in the federal Inflation Reduction Act that let Medicare negotiate lower prescription drug prices for Nevadans of all ages. 

Over half of Nevadans surveyed reported being somewhat or very worried about affording prescription drugs, and one-third did not fill a prescription, cut pills in half, or skipped a dose of medicine in the last year due to cost, according to a 2022 survey by Altarum, a non-profit research and consulting organization that focuses on health care.

The bill will lower costs on prescription drugs that have been on the market for at least 7 years, 15 high-cost and high-need prescription drugs that cost Medicare the most and do not have a generic alternative. The cost reductions would align with the Inflation Reduction Act timeline, starting October 1. 

Drug companies raised prices on nearly 1,000 medications this year with nearly half of all new drugs costing more than $150,000 a year. Fifteen years ago less than 10% of drugs cost that amount.  

“It’s time for big drug companies to stop raking in profits while patients suffer. By limiting prescription drug costs, we can protect working Nevadans from sudden spikes in drug prices, which is especially important when Nevadans are already dealing with rising costs at the pump and higher grocery bills,” Nepomuceno said at an April 3 press conference on the bill.

The federal Medicare drug pricing negotiations are estimated to reduce prices for certain drugs by 20 to 60 percent and would extend savings to Nevadans younger than 65 who don’t qualify for Medicare. 

The bill would prohibit the purchase or sale of the most used and highest-cost prescription drugs in the state to the cost as set in IRA Medicare negotiations, saving the state and Nevadans who aren’t on Medicare money on more expensive treatments because they can’t afford their prescriptions. 

While IRA will allow Medicare to negotiate the highest-cost drugs for those with Medicare, AB 250 aims to establish those same protections from high costs at the state level for all Nevadans, not just those on Medicare. 

Democratic Assemblywomen Natha Anderson and Venicia Considine are primary sponsors of state legislation.

 The Pharmaceutical Research and Manufacturers of America (PhRMA) provided testimony to the committee arguing that setting “an arbitrary price cap in Nevada based on federal decisions” could “restrict patients’ access to medicines and result in fewer new treatments for patients. Specifically, if a pharmacy or provider cannot obtain a medicine at the government price, the medicine will not be available to Nevada residents.”

The pharmaceutical industry lobby also suggested the bill was on shaky legal ground “because it would restrict the goal of federal patent law.”

The Culinary Union, which operates two of the busiest pharmacies in Nevada, also opposed the measure. Culinary lobbyist Paul Catha told the committee that Culinary had not been involved with the proposed legislation, and said the process for drug price reform “needs to include those responsible for providing prescription to patients, and the process used here does not.”

Others who opposed the bill included PILMA (Pharmaceutical Industry Labor-Management Association),  the Epilepsy Foundation, Applied Pharmacy Solutions, the Healthcare Distribution Alliance (HDA), and Biotechnology Innovation Organization.

Those in support of the bill include The Nevada Diabetes Association, Battle Born Progress, New Day Nevada, and the  Committee to Protect Health Care.

“Drugs don’t work if people can’t take them — and too many Nevadans are not taking their vital medications because they cost too much. With Assembly Bill 250, Nevada’s elected leaders can make many prescription drugs more affordable, by setting limits on the price paid for certain medications and helping prevent drug companies from price gouging families,” said Dr. Harpreet Tsui, an internist in Henderson and Nevada Lead for the Committee to Protect Health Care at a press conference on the bill. 

“People with asthma shouldn’t have to choose between paying for groceries or breathing,” Nepomuceno said at the press conference. 

No Byline Policy

Editorial Guidelines

Corrections Policy

Source