NEW: 20+ Orgs & Health Care Professionals Urge HHS to Address Consolidation & Anticompetitive Tactics in Health Care Industry

August 9, 2021 Press Release

Washington, D.C. — Today, 20+ organizations and public health professionals sent a letter to Health and Human Services Secretary Xavier Becerra urging him to address concentration and anticompetitive conduct in the health care industry, which has harmed patients and worsened health outcomes in the United States. The groups also propose several policies that HHS could enact to lower drug prices, strengthen domestic manufacturing, and reduce government spending on prescription drugs in accordance with President Biden’s Executive Order on Promoting Competition in the American Economy.

In his Executive Order, President Biden instructed HHS to address the ongoing drug pricing crisis, which is in part caused by rampant anticompetitive conduct throughout the U.S. pharmaceutical industry,” said Economic Liberties’ Legal Counsel David Barclay. “HHS should use all of its authority to protect Americans from predatory drug companies, PBMs, and insurance companies and to ensure fair competition for independent pharmacies. We look forward to the agency’s report due later this month, which will lay out its plans to reduce excessive drug prices and enhance domestic supply chains.”

The letter calls on HHS to utilize the agency’s power to address the drug supply chain and affordability crisis through various actions, including (I) using compulsory licensing to bring new insulin manufacturers to market to increase competition and break the historic insulin cartel; (II) eliminating predatory DIR fees and limiting anti-kickback exemptions for group purchasing organizations; (III) aggressively enforcing laws against companies who have illegally delayed competition; and (IV) requiring compliance with drug-industry specific competition standards in Medicare Part D and Medicaid.

Read the letter here.

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