Oregon - Oppose HB 4005 | Council For Citizens Against Government Waste

Oregon - Oppose HB 4005

State Action

February 7, 2018

Oregon State Legislature
900 Court Street NE
Salem, OR 97301

Dear Legislator,

On behalf of the 32,328 members of the Council for Citizens Against Government Waste (CCAGW) in Oregon, I urge you to oppose HB 4005, the Prescription Drug Price Transparency Act.  The bill is scheduled to be considered in the House Committee on Health Care this afternoon.  This bill will do nothing to reduce the cost of medicine, but it will impose extraordinarily complex and expensive compliance burdens on manufacturers and stifle innovation.

Requiring companies to provide 60 days’ notice of a price increase would set off alarm bells for wholesalers and suppliers, which could lead to hoarding and shortages.  Forcing the disclosure of sensitive, proprietary information related to research and development, marketing, and distribution will have a chilling effect and deter new participants from entering the market, resulting in less competition and higher prices. 

The price of prescription drugs generates much media attention and controversy, and it is understandable that legislators, government officials, and consumers are expressing their concern.  But, the best approach to lowering drug prices is an environment that fosters competition and innovation.  It takes 10 to 12 years to get a new drug through the Food and Drug Administration (FDA) approval process, which costs an average of $2.6 billion.  Fortunately, Congress has taken steps to speed up clinical trials and the approval process, though more remains to be done.

One way to lower prices would be for Oregon legislators to ask their U.S. congressional delegation to continue to hold the FDA’s feet to the fire to make sure the backlog of generic drugs awaiting approval can be cleared.  This would be a far more effective way to help bring down the price of prescription drugs than passing this unnecessary and counterproductive bill.

On behalf of Oregon taxpayers, please oppose HB 4005.

Sincerely,

 

Thomas A. Schatz

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