TAPP Signs onto Coalition Letter Opposing IRA Drug Price-Setting Provisions

The Trade Alliance to Promote Prosperity has joined over 80 other organizations in signing onto a letter to congressional leaders pushing back against drug price-setting provisions contained in the deceptively named Inflation Reduction Act.

President Biden’s signature law created a new government price control on prescription medicines enforced by the threat of a whopping 95 percent excise tax on the same drugs.

This price control is called a “negotiation” by proponents of the law, but there is no actual choice involved. A drug manufacturer must submit to the government-imposed price control or subject sales of that drug to a confiscatory 95 percent excise tax. That is no choice at all.

This will create harmful distortions to our healthcare system and our economy, which ultimately will jeopardize Americans’ health, diminish America’s global leadership on medical innovation, and deprive Americans of access to as-yet-undiscovered therapies and medicines.

Read the full letter here.