Cathy McMorris Rodgers - Chair of the House Energy and Commerce Committee | Official U.S. House headshot
Cathy McMorris Rodgers - Chair of the House Energy and Commerce Committee | Official U.S. House headshot
House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) issued a statement regarding the Biden-Harris administration’s drug price-setting scheme.
“The Biden-Harris administration’s Inflation Reduction Act is already backfiring—leading to higher list prices for the prescription drugs that seniors rely upon to stay healthy. This scheme is also hampering the research and development of the next treatment or cure for Americans battling diseases, such as cancer. Furthermore, the IRA has driven up Medicare Part D premiums, which the administration is desperately trying to hide by giving away taxpayer dollars to big insurance companies. If this administration was serious about lowering the cost of care, it would support bipartisan solutions, like the Lower Costs, More Transparency Act, which passed the House with overwhelming support.”
The statement highlighted several issues purportedly caused by the Inflation Reduction Act (IRA):
**Increased Premiums and List Prices for Drugs:**
- Launch prices for new drugs increased 35 percent after the passage of the IRA.
- Part D premiums have risen significantly, with a 179 percent increase in plan’s national average monthly bid. The administration is now spending $5 billion to conceal these premium increases from seniors just for 2025 alone.
- The number of standalone Medicare Part D plans available for seniors dropped by 11 percent from last year.
**Fewer Treatments and Cures for Patients:**
- Since the passage of the IRA, 36 research programs and development of 21 drugs have been discontinued.
**Misguided Policy:**
- Many drugs are already discounted through private market negotiations, and there is no guarantee that seniors will benefit from these prices.
- Savings touted by the administration based on 2023 data may be lower in 2026 due to market competition and increased privately negotiated rebates.
- Actual savings from new set prices in 2026 could be less than $5 billion spent in 2025 to hide Part D premium increases caused by the IRA.
- The White House's savings calculations use list prices that do not reflect what Medicare beneficiaries actually pay.
**Increased Bureaucracy:**
- The Department of Health and Human Services (HHS) has hired 91 new bureaucrats to set drug prices.
- The IRA allocated three billion taxpayer dollars to HHS to implement a new office responsible for setting prices.
Main: (202) 225-3641
Press: (202) 226-4972
Alerts Sign-up