Supporters of Speaker Pelosi’s drug pricing plan (H.R. 3) claim the bill will discourage the development of so-called “me too” drugs. For example, Rep. Donna Shalala was recently quoted as saying:
“I think it actually will reduce me-too drugs … I think [pharmaceutical companies] are going to clean their portfolios. … I think that they’ll become more efficient.”
There’s just one problem: HR 3 is designed to have the opposite effect. Under the bill, the Secretary of Health and Human Services is required to negotiate the price of certain “eligible” drugs.