Another issue brought up was that the plan proposes emergency purchases of alternative versions and to encourage competition from additional suppliers. Also proposed would be legislation to safely and securely import drugs for personal use from foreign nations, if those nations have safety standards as strong as those in the United States.
And for how the plan might work financially or with penalties, Clinton is proposing a fine or increased rebate from drug companies if they are found to be excessively raising prices. The funds from such fines or penalties would then be used to lower costs, as well as to make alternative drugs and treatments available and speeding up approvals to increase competition.
Chattopadhyay noted several other noteworthy proposals, as follows:
- Allowing Medicare to negotiate prices
- Capping monthly drug costs
- Ensuring drug companies invest in R&D rather than marketing
- Requiring health insurance plans to place a monthly limit of $250 on covered out-of-pocket prescription drug costs
- Building on Affordable Care Act provisions that invest in private research
- Suggestions of a value-based payment system
- Ending direct-to-consumer (DTC) marketing and reinvesting those funds into R&D and ending corporate write-offs for DTC advertising
- Establishing a mandatory FDA pre-clearance procedure for DTC, funded through user fees paid for by pharmaceutical manufacturers
- Requiring drug companies that benefit from taxpayers’ support to invest in research, not marketing or profits
It is important to understand that this is not a pointed report calling out or challenging the proposals. The Chattopadhyay report was even titled, “Drug Pricing Proposals – Part Deux – The Good and the Not-so-good.”
One more issue to consider is where a firm stands on an industry. The Janney Montgomery Scott’s related analyst ratings include 109 Buy ratings, followed by 98 Neutral ratings and two Sell ratings.
24/7 Wall St. has taken several other views from industry groups, organizations and media reports to make sure that this is fair and balanced. Thesewill be updated as more outside opinions and statements are released:
- The Alliance for Retired Americans: Hillary Clinton’s Drug Plan Is a Win for Seniors; Government Would Act Against Unfair and Monopolistic Business Practices
- USA Today: Clinton offers plan to rein in ‘excessive’ drug price hikes
- New York Times: Hillary Clinton Unveils Plan to Address ‘Excessive’ Increases in Drug Prices