By Marc Greilsamer
When the Democratic-controlled 110th Congress was sworn in on Capitol Hill last week, it was no cause for celebration inside the pharmaceutical industry. During the previous dozen years, the outgoing Republican majority had delivered to the industry an era of unprecedented prosperity and regulatory kindness. However, it’s not hard to decipher the message being pounded home by the newly minted Democratic Congressional leaders: The jig is up.
The next few months will determine whether or not the industry’s dread is warranted as the Democrats pursue a number of initiatives intended to lower the costs of prescription drugs for the American consumer. Chief among them is a proposal to drastically revamp the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), which currently prohibits the government (i.e. Medicare) from directly negotiating with drug companies to obtain lower drug prices for seniors. Democrats have also debated lifting the ban on large-scale drug importing from nations such as Canada. It is suspected that Democrats may attempt to allow generic drugs onto the market more quickly than is currently allowed.
Other subjects being bandied about by Democrats may not directly affect prescription prices, but may well affect the drug industry’s bottom line. Many Democrats favor a tightening of the drug-approval process at the U.S. Food and Drug Administration (FDA). In addition, it is widely believed that Democrats, as part of a larger purge of corruption on the Hill and a pledge to rein in big business in general–will intensely scrutinize a variety of conflicts-of-interest issues that the old guard may have been willing to let slide. What’s more, there is the issue of the FDA’s “preemption rule,†which attempts to shield drug companies from private lawsuits in state courts.
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