Congress should pass Red Tape Elimination Act to lower prescription drug costs
Rising prescription drug costs, particularly for biologic medicines, are preventing many U.S. adults from taking their prescribed medications. Biosimilars offer a cost-effective alternative, with the potential to save billions, but regulatory barriers limit their uptake. Passing the Red Tape Elimination Act could increase access to biosimilars, reduce confusion, and lower drug costs for patients and taxpayers.
- ▪Biologics account for 51% of prescription drug spending despite making up only 5% of prescriptions.
- ▪FDA-approved biosimilars can cost up to 50% less than reference biologics and have already saved $56 billion.
- ▪The Red Tape Elimination Act would designate all approved biosimilars as interchangeable and eliminate a one-year market exclusivity period for the first interchangeable biosimilar.
- ▪A 2025 study found the current interchangeability distinction has led to lower market uptake of biosimilars in the U.S. compared to generics.
- ▪Without action, a 'biosimilar void' may occur, as only 10% of biologics losing patent protection have biosimilars in development.
Opening excerpt (first ~120 words) tap to expand
Last year, 43% of U.S. adults did not take their medication as prescribed because of the cost of prescription drugs. These rising drug prices hit American seniors, small businesses, and middle-class families the hardest. The bulk of these costs are due to biologic medicines. While biologics make up only 5% of our country’s prescriptions, they account for 51% of prescription drug spending. In fact, patient and taxpayer spending on biologics has increased from $100 billion to $260 billion over the last decade.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Washington Examiner.
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