New Mexicans continue to struggle to afford the prescription drugs they need, often having to choose between their medication and other necessities, such as rent and groceries. Drug costs were out of control before COVID, but are even worse now. The big drug companies have taken advantage of the pandemic to raise prices on 645 brands almost 6% in the first eight months of 2020, according to the data firm Analysource.
That is outrageous and unacceptable. It is critical the state legislature take action to help ensure that all New Mexicans have access to affordable medications, because drugs don’t work if people can’t afford them. By creating a Prescription Drug Affordability Board, as other states are doing, New Mexico can have an independent body with the authority to evaluate high-cost drugs and set reasonable rates for consumers to pay.
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.
We’ve all heard the heartbreaking stories of profiteering in the pharmaceutical industry. Drug companies increased the cost of EpiPens, needed to save people’s lives when they have allergic reactions, from $100 to over $600. This endangers the lives of people who can’t afford them. They charge $94,000 a year for a breast cancer drug, $300,000 a year for a drug that treats infants who have seizures, and $60,000 for a sleep disorder drug for blind people.
Meanwhile, the drug companies that produce these drugs make billions of dollars a year in profits. The Journal of the American Medical Association reports 35 big drug companies raked in $8.6 billion in profits between 2000 and 2018. Nine of the top 10 companies spend more money on marketing and advertising than they do on researching new drugs. There is no excuse for the high prices they charge.
Enough is enough. Health Action New Mexico and AARP are part of a statewide coalition of health experts, patient advocates and consumers – the New Mexico Coalition for Affordable Prescriptions – urging our lawmakers to create a Prescription Drug Affordability Board and end the prescription drug price gouging that hurts our families and neighbors.
The board would look at 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 lower costs benefit consumers. Staffing the board would be funded by a fee on pharmaceutical manufacturers.
On average, Americans pay four times as much for the same medicines as people in other countries. As prescription drug companies continue to increase prices, even in the midst of a pandemic, it’s time to stand up to those who are harming vulnerable New Mexicans. We need controls to make drugs more affordable for people. New Mexico needs a Prescription Drug Affordability Board.