Misleading Legislation Would Put U.S. Innovators at a Global Disadvantage

The deceptively named legislation Lowering Drug Costs for American Families Act was recently introduced by House Democratic Health Committee leaders. The legislation was introduced by Frank Pallone, Jr. (D-NJ), Richard Neal (D-MA), and Robert “Bobby” Scott (D-VA), and it is meant to be an addition to the Inflation Reduction Act (IRA). Much like past attempts to over-regulate the biotechnology industry, this proposed legislation would hinder innovation and the ability of medical manufacturers to develop new cures. It would ultimately restrict American patients’ ability to receive proper care and access the medicine they need.

A particularly alarming aspect of the proposed legislation is the price negotiation mechanism— similar to the one included in the socialist drug price scheme known as H.R.3. The same lawmakers who proposed the legislation worked with Speaker Nancy Pelosi in 2019 on H.R.3.

In theory, the price negotiations are supposed to give Americans cheaper drugs. In practice, it would decimate funding for research into new cures and throw away incentives for companies to innovate. The proposed legislation would put American scientists and researchers at a global disadvantage, giving foreign governments the opportunity to overtake the U.S. as the global leader in medicine and biotechnology. It would compound the problems created by the IRA and the exacerbate the negative impact it had on the biotechnology industry.

The proposed legislation is price controls by another name. It would limit doctors’ choices, worsen patient outcomes, and hurt the U.S. economy.

Read our issue guide for past price control legislation here.