We’ve already proposed a few ways to lower prescription drug and health care costs for seniors (see Idea 47).
Here’s another idea that would lower drug costs for everyone: let’s end the pay-for-delay deals between big drug companies and generic drug manufacturers that keep generic drugs off the market. Ending these deals would save Americans billions of dollars each year.
Right now, when lucrative patents held by big drug companies run out, generic drug manufacturers can start making and selling the same drugs at lower prices. But that doesn’t always happen. Why? Big drug companies offer generic drug manufacturers cash to hold generic drugs off the market.
As a result, lower cost generic drugs are delayed by an average of 17 months. That costs American consumers more than $3.5 billion each year in drug costs they shouldn’t have to pay.
On the day a patent ends on a drug, a generic equivalent should be on market at a lower price, not one or two or three years later. Big drug companies should be banned from paying to keep these drugs off the market.
It would lower drug prices. It wouldn’t cost taxpayers a dime. And it’s the right thing to do.
So let’s do it.
Submit your ideas to chad@chadmcgowan.com.
Here’s another idea that would lower drug costs for everyone: let’s end the pay-for-delay deals between big drug companies and generic drug manufacturers that keep generic drugs off the market. Ending these deals would save Americans billions of dollars each year.
Right now, when lucrative patents held by big drug companies run out, generic drug manufacturers can start making and selling the same drugs at lower prices. But that doesn’t always happen. Why? Big drug companies offer generic drug manufacturers cash to hold generic drugs off the market.
As a result, lower cost generic drugs are delayed by an average of 17 months. That costs American consumers more than $3.5 billion each year in drug costs they shouldn’t have to pay.
On the day a patent ends on a drug, a generic equivalent should be on market at a lower price, not one or two or three years later. Big drug companies should be banned from paying to keep these drugs off the market.
It would lower drug prices. It wouldn’t cost taxpayers a dime. And it’s the right thing to do.
So let’s do it.
Submit your ideas to chad@chadmcgowan.com.
