Brown Bill to Crack Down on Drug Company Greed, Protect Taxpayer Dollars Signed into Law

by: Senator Sherrod Brown (D-OH)

Washington, D.C. - April 23, 2019 - (The Ponder News) -- President Trump signed U.S. Senator Sherrod Brown’s (D-OH) bipartisan measure into law that would prevent drug companies from misclassifying their medications as generic drugs to charge Medicaid, and therefore taxpayers, more money. Brown’s measure follows Mylan’s $465 million settlement with the U.S. Department of Justice (DOJ) for overcharging Medicaid by millions of dollars by misclassifying their EpiPen as a generic medication. Brown’s bill would give the U.S. Department of Health and Human Services (HHS) the ability to correctly reclassify a medication and recoup any rebates given to the drug companies when they misclassify a drug. Brown’s measure is part of a bipartisan bill that now heads to the President’s desk to be signed into law.

“Taxpayers should not be on the hook for the drug companies’ corporate greed,” said Brown. “By going after bad actors who try to rig the game in their favor by misclassifying their products, we can cut down on costs and protect Ohio taxpayers who rely on these medications for their health and the health of their families.”

Brown has led the charge when it comes to lowering the cost of prescription drugs for Ohio patients.

Brown recently re-introduced his Stop Price Gouging Act, which would require drug companies to report and justify increases in drug prices, and penalize drug companies that engage in unjustified price increases with financial penalties proportionate to the price spike.

The Stop Price Gouging Act would:

Require drug companies to report increases in drug prices, and justify the increase.

Penalize drug companies that engage in unjustified price increases with financial penalties proportionate to the price spike.

In addition to the Stop Price Gouging Act, Brown also introduced legislation with Rep. Doggett (D-TX) to put people over big Pharma profits. Their Medicare Negotiation and Competitive Licensing Act would authorize the Secretary of Health and Human Services (HHS) to negotiate drug prices and, if drug companies refuse to negotiate in good faith, it would enable the Secretary to issue a competitive, compulsory license to another company that is willing and able to produce the medication as a generic.

Last year, Brown and a group of Senators introduced a package of proposals to help bring down the cost of prescription drugs. The package included provisions to stop price spikes by penalizing pharmaceutical companies that engage in price gouging, and would allow Medicare to negotiate drug prices – which the President promised to do throughout his campaign. Brown’s bill, which will be reintroduced later this year, has been described as “just about every policy idea drug lobbyists hate.”