The Association for Accessible Medicines supports The Protecting Access to Affordable Medicines Act (H.R. 2868), which helps ensure patients maintain uninterrupted access to low-cost medicines by fixing the misguided application of the Medicaid rebate to generic medicines.
Dan Leonard, AAM president and CEO sent a letter to Representatives G.K. Butterfield, D-N.C. and Billy Long, R-Mo., thanking them for introducing the Act.
“Access to generic medicines is a critical lifeline to millions of Americans. With 90% of all prescriptions filled by generic medicines each year, patients experience significant savings at the pharmacy counter. In fact, the U.S. health care system saved $313 billion in 2019 through the use of safe, effective and affordable generics," wrote Leonard.
Leonard noted that The Protecting Access to Affordable Medicines Act helps ensure patients maintain uninterrupted access to low-cost medicines.
"Since 2017, generic manufacturers have paid millions in additional Medicaid rebate penalties due to minor market fluctuations outside of their control. The Medicaid Generics Penalty is incurred when the average manufacturer price exceeds the rate of inflation. In a recent survey of AAM’s member companies, we found the vast majority of instances in which generic manufacturers paid the penalty were due to regular, market-driven changes to how medicines are purchased and not the result of increases in list price. The Medicaid Generics Penalty thus threatens the sustainability of the generics market and increases the likelihood of shortages," Leonard wrote.
Leonard pointed out that The Protecting Access to Affordable Medicines Act would fix the misguided application of the Medicaid rebate to generic medicines. "Exempting the lowest-cost medicines from the Medicaid Generics Penalty – those with an AMP of less than $1 per unit – ensures robust competition is maintained, reduces the risk of drug shortages and benefits patients through sustainable access to low-cost generics," he stated.