Driving Access to Affordable Drugs
Why Employers Care
Employers have a direct and growing interest in patent reform policies and other measures that expand access to lower-cost generics and biosimilars. When patents on brand-name drugs expire, the timely introduction of biosimilars and generics leads to greater market competition and lower prescription drug prices, helping reduce overall health care costs for both employers and their employees. However, current regulatory and patent system inefficiencies often delay this access. That’s why employers support the following reforms to create a more transparent, competitive pharmaceutical marketplace, including:
- Streamlining biosimilar interchangeability requirements;
- Improving coordination between the Food and Drug Administration (FDA) and U.S. Patent and Trademark Office (PTO) to prevent the misuse of patent filings that block competition; and
- Thoughtfully considering international pricing provisions that can impact domestic pricing strategies.
Ultimately, advancing these reforms helps employers manage rising health care costs, ensure access to affordable, high-quality medications, and maintain sustainable, competitive health benefits programs that support the health and financial security of their workforce.
Streamlining Biosimilar Interchangeability Requirements
Biosimilars offer safe, effective, and lower-cost alternatives to brand-name biologic medications, yet overly complex interchangeability requirements have slowed their widespread adoption.
Simplifying these regulatory hurdles will empower pharmacists and providers to more readily substitute biosimilars, increasing competition and delivering savings to patients, employers, and health plans alike.
- Labeling for Biosimilar and Interchangeable Biosimilar Products; Guidance for Industry DRAFT GUIDANCE (FDA-2016-D-0643)
- Considerations in Demonstrating Interchangeability with a Reference Product: Update; Draft Guidance for Industry [Docket No. FDA-2017-D-0154]
- More information on biosimilars cost savings and competition
Advancing Patent Policies
Practices like “patent thickets”, “evergreening”, and others extend monopolies on brand-name drugs well beyond intended patent lifespans. Employers support tackling these practices and enhanced coordination between the Food and Drug Administration (FDA) and the U.S. Patent and Trademark Office (PTO) to prevent the misuse of patent filings that delay the entry of affordable generics and biosimilars.
Better collaboration between these agencies can help identify and address abusive practices early, protecting market competition and improving access to cost-effective medications.
- Finish the Job – Enact PBM Reform Blog Post
- Patent Reform Overview One-Pager
- Needed Patent Reforms Will Lower Drug Costs One-Pager
- Stop Drug Manufacturers From Abusing the Patent System and Engaging In Anti-Competitive Practices One-Pager
- Affordability RFI (Pages 12-13)
- Budget Committee Health Care Task Force Response (Page 9)
- Request for Public Comment to Proposed Rule: Terminal Disclaimer Practice to Obviate Non-statutory Double Patenting
Medication Affordability and Patent Integrity Act (S. 2780 and H.R. H.R. 5429 – 118th Congress)
- S. 2780 Congress One Pager – 118th Congress
- H.R. 5429 Congress Fact Sheet – 118th Congress
- FDA-PTO Coordination to Lower Drug Costs – 118th Congress
- ERIC Support Letter – 118th Congress
- Patient Support Letter – 118th Congress
- House Judiciary Group Letter – 118th Congress
- ASHP Correspondence on HELP Markups of S. 2305 and S. 2780 – 118th Congress
- September 2024 AAM Letter – 118th Congress
Interagency Patent Coordination and Improvement Act of 2023 (S. 79 and H.R. 1717 – 118th Congress)
- S. 79 One Pager – Sen. Durbin – 118th Congress
- S. 79 One Pager – Sens. Durbin and Tillis – 118th Congress
- S. 79 Section by Section – 118th Congress
- ERIC Letter to Senate Judiciary Members – 118th Congress
- House Judiciary Group Letter – 118th Congress
Preserve Access to Affordable Generics and Biosimilars Act (S. 142 – 118th Congress)
- ERIC Letter to Senate Judiciary Members – 118th Congress
- Grassley–Led Bills To Lower Prescription Drug Costs Pass Senate Judiciary Committee (02.09.2023 Press Release) – 118th Congress
Stop STALLING Act (S. 148 – 118th Congress)
- ERIC Letter to Senate Judiciary Members – 118th Congress
- Grassley–Led Bills To Lower Prescription Drug Costs Pass Senate Judiciary Committee (02.09.2023 Press Release) – 118th Congress
Affordable Prescriptions for Patients Act of 2023 (S. 150 and H.R. 9070 – 118th Congress)
- ERIC Letter to Senate Judiciary Members – 118th Congress
- Grassley–Led Bills To Lower Prescription Drug Costs Pass Senate Judiciary Committee (02.09.2023 Press Release) – 118th Congress
- House Judiciary Group Letter – 118th Congress
A Bill to Address Patent Thickets (S. 3583 and H.R. 6986 – 118th Congress)
- Bill to Address Patent Thickets – 118th Congress
- House Judiciary Group Letter – 118th Congress
- Welch, Braun, Klobuchar Support USPTO Rule to Help Lower Drug Prices, Rein in Big Pharma (09.25.24 Press Release) – 118th Congress
Prescription Pricing for the People Act of 2023 (S. 113 – 118th Congress)
- Grassley, Cantwell Continue Campaign To Hold PBMs Accountable (01.26.2023 Press Release) – 118th Congress
- Bill Summary for the Prescription Pricing for the People Act of 2023 – 118th Congress
Other Resources
- An Update on Patents – How Reforms Could Impact Drug Costs For Plans and Their Beneficiaries (06.24.24 Webinar)
- PPT Presentation from 06.24.24 Patent Webinar
Thoughtfully Considering International Pricing Provisions
Proposals that link U.S. drug prices to international pricing benchmarks must be carefully evaluated for their potential to affect domestic markets. Employers believe pricing strategies should prioritize sustainable access and affordability for American patients and plan sponsors while encouraging pharmaceutical innovation. Thoughtful, evidence-based approaches to international pricing provisions can help balance these goals without creating unintended cost pressures at home.
- ERIC Statement – House E&C Affordability Hearing (1.31.24)
- House Budget Health Task Force RFI (10.13.23)
- 2022 Affordability RFI (2.4.22)
- E&C Prescription Drug Statement (5.4.21)