The seven leading pharmaceutical companies in the U.S. faced the Senate Finance Committee on Tuesday, Feb. 26, to answer inquiries regarding the high prices of medicines. The hearing has been given the title: "Drug Pricing in America: A Prescription for Change, Part II" and heated arguments are expected between the drug manufacturers and the Congress.
According to Reuters, the hearing on drug pricing will surely bring the debate on the cost of healthcare to new heights as this is an issue that will negatively impact the performance of the pharmaceutical business sectors in the days ahead. Those expected to come to the hearing include CEOs of Bristol-Myers Squibb, Sanofi, Merck, AstraZeneca, Pfizer, AbbVie and J&J.
These pharmaceutical companies are facing the threat of legislative action if they cannot justify the rising prices of their products. A day before the inquiry started, Senator Chuck Grassley reminded the executives who will attend the hearing to never blame others for the problem and with this, it can already be assumed that the event would an argumentative event and it surely was.
"I hope the drug co CEOs testifying tomorrow don't try to blame everyone but themselves/take no responsibility for their role in fixing the problem," the senator tweeted. "We already understand there are other factors to consider and tomorrow is about the drug cost - what can be done to lower costs for patients and taxpayers."
This comment came after the companies pointed to pharmacy benefit managers like the one to be blamed for the rising pricing of prescription drugs. The managers were described as the middlemen who negotiate for discounts and this reasoning seems to suggest that these people benefit from the markdown prices as they resell the products at higher prices.
In Tuesday's hearing, Senator Grassley opened the meeting by saying he is tired of the companies' efforts to avoid taking responsibility thus he is hoping for everyone to be fair and speak truthfully.
"We cannot allow anyone to hide behind the current complexities to shield the true cost of a drug," he stated. "We've all seen the finger-pointing. Every link in the supply chain has gotten skilled at that but like most Americans, I'm sick and tired of the blame game. It's time for solutions."
Now, the seven leaders in the pharmaceutical sector defended their steep prices for prescription medicines and some of the things they cited for imposing such high amount was any cuts in their profits will hamper their drug research and development of new medicines and treatments.
The drug manufacturers also mentioned the issues in the US healthcare system, especially what the rebates can do in making drug prices expensive. They revealed that removing the rebates in most healthcare system would lower their prices. President Donald Trump previously proposed the prohibition of rebates but this order will only apply to government-funded Medicare health program and Medicaid for citizens with low income.
Finally, while the pharma executives agreed that medicines should be made affordable for everyone, they are hesitant to lower their rates without other reforms, USA Today reported. Grassley and Sen. John Cornyn said even if they have covered many topics in the hearing, the issue still worth further discussion since there are still many loose ends to tie up.
