AMAC Opposes Legislation That Price-Fixes the Cost of Insulin

This letter, sent to the entire House Republican Conference, calls out the Democrats for obvious election year pandering in introducing a bill that offers no meaningful long-term solution to lowering the cost of insulin. Its price-fixing provision opens the door to further prescription drug price mandates and government regulation.

March 30, 2022

The Honorable Steve Scalise
House Republican Whip
H-148 The Capitol
Washington, DC 20515

Dear Whip Scalise,

On behalf of the 2.3 million members of AMAC – Association of Mature American Citizens, I write to express our concern with H.R. 6833, the Affordable Insulin Now Act.

Not too long ago, former President Trump made significant gains in lowering insulin costs for Americans. He initiated the Part D Senior Savings Model a voluntary program which allows beneficiaries to choose enhanced Part D plan options that offer lower out-of-pocket costs for insulin. He also signed an Executive Order that delivered inexpensive insulin and epinephrine to lower income patients. Unfortunately, President Biden delayed this Executive Order the day after he took office in 2021 before rescinding it later that year.

Now, the Democrats are considering H.R. 6833 which is an unserious attempt to lower the price of insulin. This bill would exert price controls on private market insulin to cap the costs paid by patients. H.R. 6833 takes us closer to further pharmaceutical price-fixing, a policy contained the Build Back Better plan. Price-fixing drugs leads to rationing and shortages as evidenced in other countries who have employed this policy. The Democrats’ bill is estimated to increase spending by about $11 billion, and the bill is paid for by delaying the rebate rule for one year. This Trump-era rule compels pharmacy benefit managers to share the rebates they receive from drug manufacturers with Part D beneficiaries to lower their out-of-pocket expenses.

The Affordable Insulin Now Act is an election year messaging act on the part of Democrats. If they were serious about lowering the cost of insulin, they would work with Republicans on innovative programs like the Part D Senior Savings Model, a program that is expanding with robust participation by plan sponsors and offers predictable insulin costs that do not exceed $35/month.

As an organization comprised of Americans who are age 55-plus, controlling drug costs, especially insulin costs, is paramount to maintaining a good quality of life for AMAC members. H.R. 6833 is a step in the wrong direction for lowering insulin prices and opens the door for further government price-fixing and regulation.

Sincerely,

Bob Carlstrom

President, AMAC Action