NAM Hits Back at Price Controls in PAHPA Draft
The Pandemic and All-Hazards Preparedness Act, which expires at the end of September, is critical to public-health emergency readiness. Yet, a Senate bipartisan discussion draft to reauthorize it contains some provisions that are troubling to manufacturers, the NAM told the Senate Committee on Health, Education, Labor & Pensions this week.
The background: The Senate released a draft of a bill last week to reauthorize PAHPA, a measure passed in 2006 with the intention of ensuring national readiness for public-health emergencies.
Imposing price caps: The draft contains a requirement to cap the cost of any product that has received support from either the Centers for Disease Control and Prevention or the Biomedical Advanced Research and Development Authority “at the lowest price charged for such … product[s]” among the G7 countries (the U.S., Canada, France, Germany, Italy, Japan and the United Kingdom).
- Such a move would erase the advances made over the decades since the 1980 passage of the Bayh-Dole Act, which created mutually beneficial economic partnerships between the federal government, universities and private industry, NAM Managing Vice President of Policy Chris Netram said in his message to the committee.
- A price limit “would reduce the positive impact of the Bayh-Dole Act by imposing price controls on products developed through the innovation spurred by these partnerships,” he said.
Deterring innovation: Pricing controls also threaten continued scientific advancements of the sort that have cured once-prevalent diseases and solved “some of the world’s most prevalent and challenging health issues,” Netram continued.
- “The development of new medicines demands tremendous financial investment, many years of intensive effort and a willingness to accept significant risk. While public–private partnerships are important in stewarding new drugs to market, pharmaceutical companies bear almost the entire cost of discovering new drugs, ushering them to approval and scaling them through manufacturing.”
- In 2019, the pharmaceuticals industry invested more than $83 billion in the research and development of new drugs, Netram said, citing Congressional Budget Office data.
Stopping the flow of medication: Perhaps most concerningly, setting cost caps on drugs also jeopardizes the flow of medications to those who need them, Netram told the committee.
- “Price controls … restrict the supply of medicines to patients,” Netram concluded. “As such, price control language should be excluded from the PAHPA.”
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National Association of Manufacturers Launches NAM Health Care to Address Member Health Coverage Needs
NAM Offers Association Health Plan for Employers in Select States
ANN ARBOR, MICH. – The National Association of Manufacturers announced today that it will offer an association health plan to its members, extending affordable health care to small and medium-sized manufacturing companies and member associations in approved states. In states where the association health plan is not available, the NAM will connect manufacturers with available small-group options in their state.
“This association health plan is another step in our work to make the NAM a one-stop shop for manufacturing across the United States,” said NAM President and CEO Jay Timmons. “With small and medium-sized businesses making up more than 90 percent of our membership, this plan will help provide health care and reduce uncertainty for workers and their employers across the country.”
The plan, called NAM Health Care (www.namhealthcare.com), was developed to meet manufacturers’ unique health care needs. It will offer a portfolio of health benefits options insured by UnitedHealthcare. In states where these plans are available, businesses with 2 to 99 employees will be able to choose from a variety of PPO (Preferred Provider Organization) and HSA (Health Savings Account) health plans. Members will also have access to UnitedHealthcare’s Choice Plus care provider network of more than 1.2 million physicians and care professionals and 6,500 hospitals and other care facilities nationwide. UnitedHealthcare will work with any licensed or appointed agents who want to sell NAM Health Care.
In addition, Mercer will provide the NAM’s small business members with consulting services regarding health benefits offerings and contribution strategies, marketing support to educate and enroll their employees, plan administration and compliance services. The Mercer Affinity 365+sm platform will provide members technology for quoting, enrollment and ongoing benefits administration to drive cost efficiencies and facilitate employee engagement.
Association health plans allow companies to band together to manage and purchase health care coverage that may save on annual health insurance costs by providing plans that are typically enjoyed by larger companies at a competitive price. Under NAM Health Care, eligible member companies also will have access to supplemental benefits, including dental, vision and life.
“The work that manufacturers are doing every day grows the economy and strengthens our country, and they deserve the health care they need to do that job with certainty and support,” said Timmons. “At the NAM, we are proud to help lower costs and increase competitive health coverage for the men and women who make things in America.”
NAM Health Care is quoting these plans for eligible member groups for a Sept. 1, 2019, enrollment date. To enroll in these plans, where available, interested businesses may visit www.namhealthcare.com.
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