Democrat plans for drug prices would ‘undermine’ access to generics

And the $1.7 trillion in savings for consumers

By Merrill Matthews
Real Clear Health

House Democrats have passed their massive social spending bill. It includes a measure to empower Medicare to set drug prices, which supporters have hailed as a victory for patients.

It is anything but. Specifically, it would undermine a landmark piece of legislation that vastly expanded access to low-cost generic medicines.

Passed in 1984, the Hatch-Waxman Act created a legal framework that allows generic drug makers to manufacture and sell lower-cost versions of brand-name medicines. Any American who has ever saved money by purchasing a generic medication has the law to thank.

Hatch-Waxman granted new drugs a five-year exclusivity period, during which the company that invented the medicine has the market to itself. Generic companies can use that time to develop and test their versions of the drug. Once that time elapses, generic competitors can launch their own versions at a lower price.

The law also affords generic drug makers important legal protections, such as an exemption from patent-infringement liability in certain circumstances. And, it grants a 180-day exclusivity period for the first generic firm to release a specific drug – a strong, consumer-friendly incentive to get cheaper products to market, quickly.

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