Press Release

Statement on Medicare Rights Center and Social Security

PhRMA July 24, 2014

Washington, D.C. (July 23, 2014) — Pharmaceutical Research and Manufacturers of America (PhRMA) Senior Vice President, Communications, Robert Zirkelbach issued the following statement:

“Finding viable solutions to contain Medicare costs is critically important, but imposing price controls in Medicare would hurt the millions of seniors who rely on the Part D program to access the medicines they need. These policies would fundamentally alter the competitive nature of the program that has led to its success and could increase beneficiary premiums, cause job loss, and reduce incentives for innovation.

“By any measure, the Part D program has been an unprecedented success. Patients are overwhelmingly satisfied with the Part D program and costs are 45 percent below initial projections. Importantly, the Congressional Budget Office (CBO) recently updated its scoring methodology to reflect that increased prescription drug utilization in Part D reduces spending on other Medicare services.

“Under current law, Part D purchasers already negotiate significant discounts and rebates with manufacturers in the program, and CBO has repeatedly said that further negotiation by the government would have a negligible impact on federal spending unless patient access to needed medicines was limited.

“Furthermore, proposed cuts to Part B and Average Sales Price could jeopardize patient access to medicines for beneficiaries – many of whom are battling serious conditions – causing major medical and financial hardship.

“The biopharmaceutical industry remains committed to ensuring patients have access to the medicines they need to live their best lives.”

About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research and biotechnology companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $550 billion in the search for new treatments and cures, including an estimated $51.1 billion in 2013 alone.

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