Congress. Former special Counsel Robert Mueller is set to appear before two committees of congress. The House Judiciary Committee and the House Intelligence Committee on wednesday, july 17th, at 9 00 a. M. Eastern. Hell testify in open session about his report into russian interference in the 2016 election. Watch live coverage on cspan3 j online at cspan. Org or listen with the free cspan radio app. The house energy and Commerce Sub Committee on health heard from officials from two pharmaceutical trade associations. They testified alongside other policy experts. Good morning, everyone. The Sub Committee on health will now come to order. The chair now recognizes for five minutes for an opening statement. Last week our Sub Committee held a hearing to essentially follow the money in the drug supply chain. We came away with much valuable information, but we also found there are many secrets. Secret decisions about how drugs are priced. Secret deals between Drug Companies and the pbms and secret agreements between pbms and insurers. Today were considering seven bipartisan bills that essentially unmask the secrets, that secret process, and ensure that low income seniors can afford their medications and build on the drug pricing package passed by the house last week. The first and very important bill ensures that seniors can afford their drugs. Representatives cunningham and bill araukus introduced a Prescription Drugs act that eliminates cost sharing for generic drugs for low income medicare enrolled people and caps their out of pocket costs for other drugs. Nearly 25 of seniors who take drugs report its difficult for them to afford their medications. This bill will not only save seniors money. It will also help save their lives in many instances. The second group of bills exposed how drug prices are set. The spike act and the fair drug pricing act require drug manufacturers to justify large spikes in drug prices. The reporting accurate drug prices act proposed by representatives dog it and buchanan require manufacturers who report the average sales price of Medicare Part b, b as in bo boy drugs. This bill makes sure medicare is paying the right price for part b drugs. All kinds of partners in this. They direct companies to report the price in quantity of the free samples of drugs, devices, and medical supplies they give to Health Care Providers. The bill does not prohibit free samples. Instead, it will help us to see how free samples influence drug pricing and distribution. The third group of bills exposes the deals between pbms and the other stake holders in the drug supply chain. The Public Disclosure act of drug discounts act offered by representative spanberger and holding requires a report of discounts they negotiate with drug manufacturers. This transparency will help to ensure the discount is passed down through the chain to patients. To patients. And i want to underscore that. The prescription pricing for the people act authored by representatives nadler and collins directs the fdc to review pbm eas behavior and whether it is anticompetitive or not. At our hearing we learned three pbms control the majority of the market, and those own large pharmacy chains and specialty pharmacies. And we believe that has potential conflicts of interest. With this bill the fdc will krut news pbms to ensure there are not any distortions of the market. Last week i said we needed to examine the system from beginning to end because in order to fix it, we not only have to we have to understand all the parts of it first and then act. With these seven bills today, i think were taking important action. Each bill is directed to reform the drug supply chain and transparency is only as good as the accountability and enforcement that has to follow. So i want to welcome our witnesses. Thank them for being here today with us. We look forward to your important testimony. And the chair now recognizes the Ranking Member of the Sub Committee on health dr. Bunch us for five minutes for his opening statement. I thank the chairman for the recognition. We have convened this morning to address an issue that affects and complicates the lives of many of our constituents. When i return home to north texas and conduct meetings in my District Office i hear the personal stories of individuals and families who are struggling to afford their medications. Unfortunately, solving this problem is not as straightforward as you might hope. As kpexemplified by our recent drug supply chain hearing. There are a number of stake holders interwoven throughout the supply chain making up the existing convoluted system. Our counterparts on the ways and Means Committee have taken a first pass at addressing transparency in hr 2113, the star act. On its face, transparency sounds like a useful and good thing. In other markets in the United States, people can shop around for goods and seek the best price or value. In health care thats more easily said than done because of the nature of the system, especially the drug supply chain. It is especially important that as we evaluate this legislation, we consider the possibility of unintended consequences for both the patient and for the market. This committee laid the groundwork and 21st century cures for the development and treatments and cures that really until the passage of that bill, those some of those things were Science Fiction and now theyre becoming reality. Two and a half years after cures was signed into law, im receiving meeting requests from stake holders who bring good news about how this law is producing real results for patients. We must strike this delicate balance with the policies we pass through this committee to ensure that they do not dampen the success or deter future investment in Bio Medical Research and innovation. No surprise. I do have some thoughts about section 2 of hr2113 which requires a notification and public posting of companies that launch a drug at a price of 26,000 or more. There are some newer therapies. These may be a single dose or a single shot that can cure an individual of a rare disease. The cost of research and development and Clinical Trials that goes into these treatments is immense. We must consider the potential impact that this requirement could have on the industry. The incentives for Drug Development in this space are working. But scaring companies away from investing in such drugs does not serve patients who might benefit from this innovation. Im reminded you can contribute a lot of things to capitalism and capital, but its not necessarily courageous. So if we make it difficult, capital will go elsewhere, and yet, we want the innovations in this space. So the fair act does not include the launch price trigger. I think thats a good place to start. I would also like to take a minute and express some concerns about Section Three about 2113. This policy would require manufacturers of drugs, devices, biologics and medical supplies to report on the samples they give to Health Care Providers each year, and this information would be publicly posted. I fear this policy could lead to a sort of public shaming of companies that are trying to benefit patients. Should such a policy deter manufacturers from providing samples to physicians, i promise you patients will be harmed. As a physician, i can say that ive seen the benefits of samples for patients firsthand. Sometimes the patients insurer requires a prior authorization process. A sample of the medication allows the patient to begin receiving timely treatment. Additionally physicians may use samples in clinical Decision Making. For example, if a new drug has come to market that may work better for a patient, the doctor can use the sample to establish whether or not the patient responds in an improved way to the new drug without subjecting the patient to financial burden or side effects developed by an unnecessary purchase. I appreciate the work the ways and Means Committee has done. We are the energy and commerce committee. We should be in the lead and i believe there are some areas in this policy we need to think through more. I want to thank our witnesses in advance for their thoughts on this legislation and i look forward to working in a bipartisan fashion. I yield back my name. The gentleman yields back, and thank him for his opening statement. I now would like to recognize the gentleman from South Carolina who is going to offer the chairman of the full committees opening statement. Thank you. Let me correct the record. Im from North Carolina. Im sorry. I know you californians, whenever you heard the word carolina, you think of the south. We have north and south in california too. I should have been im sorry for not being accurate. Thank you for your friendship. Great state. The great state of. Right. Thank you for holding this latest hearing in our series on Prescription Drug pricing. I say latest hearing because this is not the first and certainly will not be the last. Democrats are serious about the problem of rising drug prices. It is a complicated problem. I acknowledge that. Its consequences are very far reaching. I represent the First District of North Carolina where many hard working families are struggling every day to afford the basic necessities of life. Steep price hikes have the potential to force these communities have decisions between paying their bills and purchasing medications that are vital to their health. All too often these circumstances result in rationing Prescription Drugs or the abandonment of treatment altogeth altogether. I have longheld that quality and Affordable Health care is a basic necessity. A right that every american must have equal access. Consumers should be able to anticipate the price of their prescriptions, and must be able to rely on those prices to remain stable from year to year. All of us understand that corporations exist to make a profit. Ive acknowledged that in many hears and i understand that dynamic. Pharmaceutical investment have led to unprecedented breakthroughs and treatment that have improved outcomes and patient quality of life. Unlike most Consumer Products for many, a prescription is the literal difference between life and death. Therefore, the need to Fund New Innovations must be balanced. It must be balanced with the obligation to make medications widely available and affordable to the public. We find ourselves here today hopefully in a bipartisan way in pursuit of that goal as Congress Continues to work with every entity among the pharmaceutical supply chain to find Practical Solutions that support innovation and reduce costs for consumers. I look forward to todays discussion. I thank those who have authored these amendments and in particular, i thank the question lady from illinois for her passion and her leadership on this issue. I yield at this time to the gentle lady from illinois. I thank the gentleman for yielding. I thank the chairwoman of the Sub Committee for allowing me to wave onto this hearing on a tonic to important to all of us. The pharmaceutical industry is worth almost 1 trillion. I believe theyre Holding American consumers hostage. Our constituents are suffering and some are dying. We have the names of the dead, some of them. Because they cant afford lifesaving and lifeenhancing drugs they need. And why have drug prices skyrocketed . Sometimes 1,000 percent . Well, thats a really good question. And because Drug Companies have hidden the price policies, consumers have no choice but to pay the price if they can until now. My legislation the fair drug pricing act, hr2296 is a bipartisan, bicameral bill that will force the Drug Companies to be transparent which is the very least that we can expect from them. The bill does two things. Pharmaceutical manufacturers must notify hhs and submit a transparency and justification report 30 days before they raise the price of certain drugs by more than 10 or by more than 25 over three years. The report will require manufacturers to provide the manufacturing, research and Development Costs for the drug. Net profits attributed to the drug. Marketing and advertising, spending on drugs and others. Unlike hr2069, the spike act also being considered today. My bill does not allow manufacturers who pick and choose what information they would like to disclose, and unlike the spike act, my bill requires hhs to make all of the nonproprietary information from those reports public and available to everyone online for everyone to see. For the First Time Ever this bill will offer taxpayers nationwide notice of price increases and bring basic transparency to the market for Prescription Drugs. The bill being considered today are only a start. And transparency is only a piece of the puzzle in bringing down the cost of Prescription Drugs. These bills are all bipartisan, and im proud that representative rooney joined me in reintroducing this. Senator baldwin, and senator ron and the senate are also doing this bill. I hope well have positive consideration of it, and let me also enter into the record a very important letter from the National Multiple Sclerosis society representing people who are having trouble paying for the spiked prices in their drugs, and i yield back. The gentlewoman yields back. Now i would like to recognize the Ranking Member of the full committee, and offer my condolences to him on your trail blazers. They did play well. Really . But not good enough. This is how were going to start . Yeah. Boy, and i was going to say nice things about you this morning. It was tough in overtime last night. It was. And it was close. It was a great game. Close counts in horseshoes, not basketball, but we appreciate that, mad m chair. Thank you for that reminder this morning. Now lets get on about serious business. Patients need our help. What goods and prescriptions if a patient cannot afford to pay for their medicine . Drug pricing is of great concern to all americanss and our president. Its come up at nearly every one of the 20 town halls ive done in my district. Often prices continue to rise and while there are reasons given, patients rely on the medications. When Market Forces weaken or fail, we need to step in with common sense legislation. Weve taken steps recently passing a requirement that Companies Pay the proper rebait and passed the orange and purple book reforms on the floor. While i am dismayed, we did Reach Agreement here through bipartisan negotiations on several other provisions that will increase the availability of generic drugs. This Sub Committee is also built off the Foundation Last congress by examining how the Medicare Program pays for drugs and pealing back the layers of pharmaceutical price and supply chain. I thank the chair for her leadership in that regard. Im glad were examining legislation. I hope we can find bipartisan agreement on, but we must also ensure in the efforts we are pursuing policies that provide a benefit for patients. Weve got to put the patient first. We need to ensure as we work to shine a light on how drugs come to market and our price, that we realize the market must also be sustainable to produce the next generation of cures and treatments. Were living in an amazing time of innovation. Its producing cures for conditions we didnt even have a name for 30 years ago. The promise of what lies ahead is staggering in their ability to relieve human suffering from conditions. Were on the cutting edge of solving all of those. In our efforts to bring more transparency to the system, which i support, we must inherently first do no harm. For example, im concerned that provisions of some of the bills before us could allow manufacturers to back in the rebates paid. This committee has been a leader in encouraging the innovation of patients are benefitting from today through our work on the fda user fees and from the work to pass the 21st century cures led by my friend and colleague fred upton. We know that the cost of bringing a drug to market especially one that targets an orphan or neglected disease is high. We cannot ignore that. We should not randomly categorize as bad actors who has ib vested in cutting edge therapies because their list prices is over an arbitrary amount. I can tell you the new drugs, improve or save lives and thats better than investing in another metoo dr me to drug. We must put the patient front and center. Im concerned about some of the policies that could have the risk of decreasing the ability of physicians to give samples of drugs. Those who have prior authorization or coverage issues from starting treatment to informed medical judgment or help patients manage side effects. I think working in a bipartisan spirit, im hopeful we can address the concerns, and on a final note, thanks to the chairmen for arranging the jurisdiction on the bills. Thats important