Pennsylvania Lawmakers Frustrated by Hearing Over Prescription Drug Costs

When it comes to prescription drug pricing in Pennsylvania, representatives from a cross-section of industries agreed it is a complex issue. But none of the speakers were willing to assume sole responsibility for the costs consumers pay.

The Pennsylvania House Health Committee held a hearing on the thorny issue of how prescription drugs are priced and what some of the underlying causes are for increases.

State lawmakers serving on the panel weighed in on the issue during the two-and-a-half-hour discussion, as did officials from an assortment of public policy and advocacy organizations.

When it comes to the intricacies of rebates, coupons and when and under what circumstances lower cost generic drugs can be made available to consumers, state Rep. Pamela DeLissio, D-Philadelphia, shared some of the frustration that was aired throughout the hearing.

“This should not be this hard,” DeLissio said. “We should not be trying to manipulate a system that already seems severely manipulated.”

Throughout the hearing, there was discussion about following in Maryland’s footsteps and creating a prescription drug affordability board that would act in a manner similar to how public utilities are regulated.

State Rep. Dan Frankel, D-Pittsburgh, said he was receptive to such a proposal and mentioned it several times throughout the hearing as a possible means to bring costs under control. Frankel serves as minority chair of the House Health Committee.

But the prospect of having an affordability board received pushback from Lauren Neves, director of policy with the Pharmaceutical Research and Manufacturers of America.

Neves argued the creation of an advisory board would stifle research and innovation and, potentially, could hinder a company’s ability to create new disease-curing drugs.

Throughout the discussion, Neves said she believed drug manufacturers have been unfairly maligned in the ongoing debate over drug pricing. Drug manufacturers, Neves said, frequently put large sums of money back into research and development.

“We can’t afford to lose this innovation,” Neves said. On the topic of drug pricing, she said, “We think transparency is important. We want to make the market work better.”

Another player in the debate over drug prices – the insurance industry – was not represented at the committee’s hearing. State Rep. Kathy Rapp, R-Warren, said invitations were sent out, but no one responded.

“That door is always open,” said Rapp, who serves as majority chair of the House Health Committee. “We can certainly conduct another hearing, and they are always welcome at the table.”

Regardless of where the source is for the amount consumers ultimately pay for prescription drugs, representatives from several organizations implored lawmakers to enact policies that provide a level playing field.

Antonio Ciaccia of the research firm 46 Brooklyn said efforts to bring clear drug pricing comparisons to light are challenging. Rebates, discounts and other factors – described by Ciaccia as “distortions – further muddy the waters, he said.

“It’s very, very complicated,” Ciaccia said as he pointed out how drug manufacturers frequently cite proprietary data and trade secrets as reasons behind the lack of transparency.

Rapp said she anticipates further discussions of drug pricing across Pennsylvania in the road ahead.

“I don’t think this will be the last of this type of hearing,” she said. “Obviously, this will be an ongoing issue.”

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