GPhA responds to budget deal

WASHINGTON — The announcement on Tuesday that the House of Representatives had reached a tentative budget deal came as a relief to those hoping to avoid a government shutdown, but the language of the deal is imperfect, according to Generic Pharmaceutical Association president and CEO Chip Davis. In a statement responding to the news, Davis noted that certain parts of the agreement are less than ideal.

“Today’s House proposal seeks in part to balance the budget on the backs of America’s vulnerable Medicaid population, and will reduce patient access to affordable generic medicines,” Davis said. “Policymakers who are serious about keeping prescription drugs affordable for Americans should reject the provisions in today’s budget proposal dealing with Medicaid rebates that could eviscerate already strained state budgets and limit patient access to lower-cost generics.”

Davis said that rather than support the budget deal’s Medicaid provisions, lawmakers should work to pass the Fair Access to Safe and Timely Generics Act, a bill that has been introduced by Reps. Steve Stivers, R-Ohio, and Peter Welch, D-Vt. The bill would close loopholes that Davis says branded drugmakers use to prevent generic competition.

“This legislation, which enjoys bipartisan support prevents REMS misuse that costs the U.S. healthcare system $5.4 billion annually and the government $2.35 billion — which is more than the level of savings anticipated by the rebate proposal in the budget deal,” Davis said, adding that “this budget deal will make it harder for generics to get to the market, meaning that for some patients the only option that will remain are high cost branded products.”