CSRxP released a statement Monday on a revised estimate from the nonpartisan
Congressional Budget Office (CBO) on the impact of The Optimizing Research
Progress Hope And New (ORPHAN) Cures Act, a Big Pharma-backed policy that will
help drug manufacturers keep prices high on blockbuster brand name drugs at the
expense of seniors and taxpayers.
CBO NEARLY DOUBLES COST ANALYSIS FOR BIG PHARMA’S BLOCKBUSTER BAILOUT, FINDING
SENIORS AND TAXPAYERS WILL PAY $8.8 BILLION DUE TO HIGHER DRUG PRICES
Armed with More Accurate Information on the True Impact of Pharma-Backed
Policy That Will Keep Prices High on Top Money-Making Brand Name Drugs,
Congress Must Act to Repeal the ORPHAN Cures Act
Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) released a
statement Monday on a revised estimate from the nonpartisan Congressional
Budget Office (CBO) on the impact of The Optimizing Research Progress Hope And
New (ORPHAN) Cures Act, a Big Pharma-backed policy that will help drug
manufacturers keep prices high on blockbuster brand name drugs at the expense
of seniors and taxpayers.
“The updated analysis from CBO confirms the ORPHAN Cures Act will saddle
seniors and taxpayers with billions more in higher prescription drug spending
by exempting blockbuster brand name drugs and helping Big Pharma keep prices
high on their biggest money makers,” said CSRxP executive director Lauren
Aronson. “Earlier this year, Congress passed this Big Pharma-backed rider
without the right information on which brand name drugs would be impacted – or
its true cost to the American people.”
“Subsequent analysis has shown the policy will impact blockbuster brand name
drugs and help Big Pharma keep prices high on a whole category of products,
amounting to a massive bailout at the expense of seniors and taxpayers,”
Aronson continued. “Now that Congress is armed with more accurate information,
lawmakers must remedy the situation by repealing Big Pharma’s blockbuster
bailout.”
Key Facts on the ORPHAN Cures Act
* The CBO’s updated analysis estimates that the ORPHAN Cures Act will cost
$8.8 billion between 2025 and 2034, up from its original estimate of $4.9
billion.
* CBO’s analysis now includes several blockbuster drugs including Johnson &
Johnson’s cancer drug Darzalex, Merck’s blockbuster cancer drug Keytruda and
Bristol-Myers Squibb’s cancer drug Opdivo.
* The Wall Street Journal
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first reported that CBO originally estimated the pharma-backed policy would
cost seniors and taxpayers $4.8 billion in higher prescription drug spending,
but “[t]he true tally of the new provisions could be far higher because CBO
missed certain drugs such as Keytruda.”
* An analysis
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published in Health Affairs in August by Jennifer C. Chen and Anna Kaltenboeck
of Verdant Research stated there are at least 10 brand name drugs that could be
impacted by the recently passed Big Pharma-backed provision and gross Medicare
spending on these drugs in 2023 amounted to $13.8 billion, and nine of the 10
drugs that could be impacted are for certain forms of cancer.
* A second analysis
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in Health Affairs also published in August by researchers associated with The
University of Washington’s School of Pharmacy, identified at least 13 brand
name drugs that could be impacted by the ORPHAN Cures Act. These 13 drugs,
between Medicare Part B and Medicare Part D, had projected gross spending more
than $33 billion in 2024.
* The Kaiser Family Foundation (KFF) released an analysis
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and found at least 18 brand name drugs that could be impacted by the
provision. These 18 drugs combined for $17.5 billion in Medicare spending in
2023.
Read more on the ORPHAN Cures Act HERE
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.
Read more on bipartisan, market-based solutions to hold Big Pharma accountable
HERE <[link removed]>.
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