Drug price debate shifts from state houses to D.C.

In a divided D.C., does growing bipartisan support for drug pricing signal that federal action is inevitable?

As public and political scrutiny of the high cost of prescription drugs continues to increase, states across the country have quietly been adopting laws requiring pharmaceutical companies to disclose certain information when introducing new drugs to the market or raising the price of drugs already in the market. Although each has its own unique requirements and are diverse geographically, demographically and politically, these states were spurred to action by the common objectives of addressing rising drug costs and bringing transparency to the complex world of pharmaceutical drug pricing.

Many of the state laws share similar features, such as how disclosure is “triggered,” but the largely diverse requirements, coupled with the robust disclosure calendar, increase costs on companies in a resource-constrained environment and require companies to divulge business practices to potential competitors. A quick scan of drug price transparency activity at the federal level provides some indication of the different approaches and narratives emerging in Washington, but may not be capable of answering the fundamental question in this discussion – is federal action to control drug pricing on the horizon?

At the federal level, the debate over drug pricing was once largely confined to backbenchers at the political extremes, but today has found new life across the aisle and the elected branches of the federal government. History is replete with examples of movements and policy priorities that first took root among the states and then found a foothold in Washington because of broad public support, the economic need for a uniform national standard and/or political opportunity. 

As the fog of this election cycle begins to dissipate, drug pricing and the federal government’s relationship with the pharmaceutical industry may emerge as a major issue for debate and could be one of those evermore rare causes that find bipartisan consistencies. Should Congress and the executive branch take up consideration of national drug pricing legislation, they will need to decide whether to embrace those elements that worked for all stakeholders at the state level – including patients, industry, payers and communities – or to be distracted by what is politically popular in the short term to the long-term detriment of those same stakeholders. Let’s take a look at the status of potential pricing regulation actions in the executive and legislative branches of government. 

Executive action