https://www.wsj.com/articles/schumercare-and-cancer-patients-joe-manchin-chuck-schumer-drug-pricing-deal-richard-gonzalez-abbvie-11659464967?mod=opinion_lead_pos3
Much of the damage from the Schumer-Manchin drug pricing deal won’t become visible for years. But people who understand the industry can already foresee it, and one example is fewer treatment options for desperately ill cancer patients.
The mooted bill would empower the secretary of Health and Human Services to “negotiate” Medicare drug prices. “They have full latitude to basically decide whatever price they want the drug to be,” AbbVie CEO Richard Gonzalez said Friday on an earnings call. “It’s not a negotiation. We should just call it what it is. It’s price controls.”
Here’s how it would work: The HHS secretary would select 10 to 20 of the top Medicare spending drugs each year. Drug makers that don’t accept the government’s price would get hit with a 95% penalty on their sales. Small-molecule drugs would get a nine-year reprieve starting when the Food and Drug Administration grants approval.
This latter stipulation is intended to soften the blow to innovation, but it could result in patients waiting longer for potentially life-saving treatments. Take experimental cancer treatments, which regulators typically require that drug makers test first on patients who haven’t benefited from existing treatments.