Horsford’s Drug Prices Bill Unanimously Passes Key House Committee

The House Ways & Means Committee advanced the SPIKE Act on a unanimous, bipartisan vote of 40–0.

On Tuesday, the House Ways & Means Committee voted 40–0 to advance Congressman Steven Horsford’s (NV-04) SPIKE ACT — bipartisan legislation to end price gouging by requiring pharmaceutical companies to justify large price increases.

The SPIKE Act would require manufacturers to report detailed information to the Secretary of the Department of Health and Human Services (HHS) for certain drugs if their prices exceed certain thresholds.

Drug manufacturers would be required to submit a justification that explains the causes of a price increase or high launch price, which could include information on expenses pertaining to developing, manufacturing, licensing, and marketing the drug.

Over recent years, a number of widely used drugs have spiked in price, including:

• Insulin. Insulin witnessed an increase of 197 percent price increase from 2002 to 2013. At this rate, a $5 gallon of milk would now cost $14.85.
• Epi-Pen. In 2015, Mylan increased the price of the EpiPen from about $57 for a single dose to $415 for a dual pack. At this rate, a $5 gallon of milk would now cost $41.40.
• Cardiac Drugs. Valeant Pharmaceuticals increased the prices of cardiac drugs Isuprel and Nitropress by 525 percent and 212 percent, respectively. At these rates, a $5 gallon of milk would now cost $31.25 and $15.16, respectively.
• HIV/Cancer Drugs. Turing Pharmaceutical increased the price of Daraprim, a drug used for HIV and cancer treatments by 5,000 percent in a single day. At this rate, a $5 gallon of milk would now cost $255.
• Pain Medication. Vimovo and Duexis, both of which are combinations of low-cost over-the-counter drugs, skyrocketed in price over a short period: A 60-pill bottle of Vimovo that cost $138 in 2013 cost $2,979 in 2018 (a more than 2,000 percent increase); and Duexis similarly cost $140 in 2011 and had soared to $2,979 for 90 pills by 2018. At this rate, a $5 gallon of milk would now cost $105.