Oppose H.R. 3 and Pass H.R. 19 to Strengthen American Healthcare

For months, the Trade Alliance to Promote Prosperity has written about how H.R. 3, the “Lower Drugs Costs Now” Act, would be detrimental to American healthcare and to Americans’ health.

Among other objectionable provisions of H.R. 3:

  • The law would force drug manufacturers to accept prices set by the federal government or otherwise pay an excise tax of up to 95 percent of sales.

  • Based on this, the Council of Economic Advisors has conservatively estimated that H.R. 3 could result in as many as 100 fewer drugs entering the market over the next decade.

  • This, in turn, would result in reduced population health and reduced life expectancy.

  • The economic value of the reduced population health and reduced life expectancy could reach $1 trillion per year over the next decade—about double the savings that it would produce for drug consumers.

  • The law would probably result in a $75 billion to $200 billion reduction in research and development expenditures over the next decade.

On December 9, House Republicans proposed a much better, comprehensive alternative: H.R. 19, the “Lower Costs, More Cures” Act.

Among other favorable provisions of H.R. 19, the law would:

  • Lower the cost of prescription drugs by promoting more low-cost options for patients and curbing the gaming of the system by drug companies, all the while encouraging innovation of groundbreaking new cures.

  • Place a cap on seniors’ out-of-pocket drug costs and allow seniors to manage their annual out-of-pocket spending.

  • Increase transparency and remove uncertainty at the pharmacy counter.

  • Cut the cost of drug administration, including cancer treatment, for Medicare beneficiaries by as much as half.

  • Stop subsidizing other developed countries’ healthcare through stronger trade agreements with real enforcement mechanisms.

What’s also important about H.R. 19 is that the bill was crafted with bipartisan collaboration. This stands in stark contrast to H.R. 3, which, because of its one-sided, partisan nature, has no chance of becoming law.

Unfortunately, there is a distinct possibility that House Speaker Nancy Pelosi will be satisfied with a vote on only H.R. 3, which would appease the most extreme wing of her party, but which would do nothing to reduce drug prices and create more cures.

We urge Congressional Republicans to embrace the opportunity to pass H.R. 19 and thereby strengthen the American healthcare system on bipartisan solutions and vote NO on H.R. 3.

Ainsley Shea