The committee will hear from state and national experts and assess a range of policy options for controlling prescription drug prices at a day-long meeting beginning tomorrow morning at 9:00 AM in the House Chambers of the State Capitol (webcast).
A range of states, including Colorado, Oregon, Maryland and Maine, have recently enacted legislation to hold pharmaceutical companies accountable for rising prescription drug prices. Colorado passed a Prescription Drug Affordability Board this year.
“We are excited New Mexico legislators are taking a full day to inform themselves about options to address critical drug affordability options for our state,” said Barbara Webber, Executive Director of Health Action New Mexico. “Drug costs were out of control before COVID, but it is even worse now. No one should have to choose between their medication and other necessities, like rent and groceries.” In 2020, prices for 460 prescription drugs increased by an average of 5.2 percent – more than triple the rate of inflation – according to an analysis from the health care research firm, 3 Axis Advisors.
- 44 percent of New Mexicans report they have skipped taking medication or not filled a prescription because of cost concerns according to a recent statewide survey.
- On average, Americans pay four times as much for the same medicines as people in other countries.
- The Journal of the American Medical Association reports 35 big drug companies raked in $8.6 trillion in profits between 2000 and 2018.
- Nine of the top ten companies spend more money on marketing and advertising than they do on researching new drugs.
“It is past time for a change,” said Sara Manns, Campaign Director of the New Mexico Coalition for Affordable Prescriptions. “New Mexico needs an independent body that can evaluate drug costs and set reasonable rates for consumers to pay. With the establishment of the Prescription Drug Affordability Board, New Mexicans will have an advocate to ensure they are not being price gouged by drug companies.”
A Prescription Drug Affordability Board (PDAB) would regulate prescription drugs with costs that greatly impact New Mexicans, including high-cost, brand name medications. High costs can prevent patients from accessing the prescription drugs they need, cause significant affordability issues for the state and threaten public health. The Board would consider a broad range of economic factors when setting appropriate payment rates for reviewed drugs, allowing pharmaceutical manufacturers the opportunity to justify existing drug costs. Once a fair payment rate is determined, the Board sets an upper payment limit that applies to all purchasers and payor reimbursements in New Mexico, ensuring that lower costs benefit consumers. Staffing the Board would be funded by a fee on pharmaceutical manufacturers. Colorado enacted a PDAB this year, joining Maryland and Maine in creating an independent body to make prescription drugs more affordable.“Prescription drug companies are the only businesses in the health care industry whose rates are not regulated. It’s time to hold them to the same standard as all other health care providers. Creating a Prescription Drug Affordability Board is a commonsense solution to hold big drug companies accountable and drive down the cost of prescription drugs,” Webber said.
For more information: Newmexicocap.org
CONTACT: Barbara Webber, Executive Director, Health Action New Mexico 505-508-6531 (cell) barbara@healthactionnm.org