Senator’s Bold Move Against Big Pharma to Safeguard Louisiana

Senator Bill Cassidy challenges Big Pharma, investigating drug pricing programs and seeking information from major pharmaceutical companies to protect Louisiana residents.

At a Glance

Sen. Cassidy is investigating the 340B Drug Pricing Program as ranking member of the Senate HELP Committee
Cassidy seeks information from Eli Lilly and Amgen about restrictions on the 340B program
The investigation aims to balance innovation and affordability in drug pricing
Cassidy has received campaign donations from pharmaceutical executives

Cassidy’s Investigation into 340B Drug Pricing Program

U.S. Senator Bill Cassidy, the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has launched an investigation into the 340B Drug Pricing Program. This program requires drug manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to covered entities. Cassidy’s probe comes amid concerns over the program’s rapid expansion and potential misuse.

The number of contract pharmacies in the 340B Program has skyrocketed from 789 in 2009 to 25,775 in 2022. This dramatic increase has raised questions about the program’s effectiveness and potential for abuse. Since 2020, some drug manufacturers, including Eli Lilly and Amgen, have imposed restrictions on the use of multiple contract pharmacies to prevent unlawful discounts and drug diversion.

At the federal & state level Louisiana is leading the charge in protecting & supporting our manufacturers by going after global polluters. My Foreign Pollution Fee Act is the path forward to do that for our country. Thank you to the Rainey Center for their support in this effort. pic.twitter.com/Jvd2BfXDtP

— U.S. Senator Bill Cassidy, M.D. (@SenBillCassidy) September 24, 2024

Balancing Innovation and Affordability

Senator Cassidy, a medical doctor by training, has emphasized the need to balance innovation in the pharmaceutical industry with affordability for patients. During a Senate HELP Committee hearing on weight loss drugs, Cassidy highlighted the complexities of drug pricing and the importance of addressing various factors beyond targeting big pharma alone.

During the hearing, Cassidy said, “By the way, I can attest to the power of this. In medical school, removing a portion of someone’s stomach because of ulcer disease was a common surgery. One or two times a week the surgery would happen at the small hospital where I worked. But then along came a drug named Tagamet and within months, the surgery was hardly done at all. That is a drug considered so simple now that it’s sold over the counter. Now we have drugs for Alzheimer’s, obesity, cancer that we never thought would be treatable. And there was the profit motive that incentivized that.”

Cassidy argues that to effectively lower drug costs, policymakers must consider health insurance design, price transparency, and regulatory barriers. He calls for continued bipartisan efforts to strike a balance between fostering innovation and ensuring drug affordability.

Scrutiny and Campaign Donations

As the top Republican on the Senate health committee, Cassidy’s position has attracted attention from pharmaceutical industry leaders. Federal disclosures reveal that Cassidy received campaign donations from several pharmaceutical executives shortly after assuming his role as ranking member of the Senate health committee.

While these donations have raised eyebrows, Cassidy maintains his commitment to finding solutions that benefit patients and ensure the continued development of innovative treatments. His approach involves engaging with pharmaceutical companies while also holding them accountable for their pricing practices.

Conclusion

Senator Bill Cassidy’s investigation into the 340B Drug Pricing Program and his efforts to balance innovation with affordability demonstrate his commitment to addressing the complex issue of drug pricing. As he continues to navigate the interests of pharmaceutical companies and the needs of his constituents, Cassidy’s actions will likely play a significant role in shaping future healthcare policies and drug pricing regulations.