Senator Peter Welch on Legislation to Lower Prescription Drug Prices

The High Cost of Prescription Drugs

• 💊 American families are struggling with the high cost of prescription drugs, which is a major challenge to the cost of living.
• 💸 Pharmaceutical companies are accused of price gouging, charging Americans significantly more for the same life-saving medications compared to people in other countries.
• 📈 Americans spend over $1,400 annually on prescription drugs, the highest per capita globally, contributing to overall high healthcare costs.

Inflation Reduction Act's Impact

• ✅ The Inflation Reduction Act was a significant step, allowing Medicare to negotiate drug prices for the first time.
• 🗓️ This negotiation will lead to lower prices for many Medicare beneficiaries starting in 2026, with an average annual saving of $600 for over 27,000 Vermonters due to an out-of-pocket cost cap.
• 💰 The act is projected to save senior Vermonters on Medicare over $21 million on prescription drugs.

Pharmaceutical Industry Tactics

• 📉 Big pharma claims that policies like reference pricing will strain research and innovation, a claim disputed by Welch.
• 📊 Over two decades, the largest pharmaceutical companies have spent more on advertising and administrative costs, including CEO compensation, than on research and development.
• 💰 Much of the research and development spending by pharmaceutical companies is subsidized by taxpayers.

Predatory Pricing and Exploitation

• 💔 Pharmaceutical companies exploit their pricing power, derived from patents and taxpayer-funded markets like Medicare and Medicaid.
• 😥 They prey on the love Americans have for their family members, knowing people will go to extreme lengths, like taking out second mortgages or depleting retirement savings, to afford necessary medications.
• 🇨🇦 The cruelty is highlighted by the fact that people in Vermont pay five times more for drugs than those just across the border in Canada.

Bipartisan Solutions and Future Actions

• 🤝 There is bipartisan agreement that prescription drug costs are too high and that action is needed.
• 🇺🇸 Senator Welch is proud to join Senator Holly in introducing bipartisan legislation to prohibit pharmaceutical companies from selling drugs in the US at prices higher than the international average.
• 🗣️ Welch calls on colleagues and President Trump to follow words with actions, supporting measures like international reference pricing and price negotiation to make life-saving medications more accessible and affordable.