How “March-In” Rights Could Shake Drug Prices | Simplefill
One of the options the Trump administration is choosing to lower drug prices is to use the Bayh-Dole Act, which contains a provision that gives the government march-in rights. These allow federal agencies to give patents for taxpayer-funded inventions to other companies so that they can create lower-cost options.
March-in rights could make it easier to address costs on medications and inventions funded by taxpayer money, but can they provide the assistance that the American public is looking for? Learn more about march-in rights and what they could mean for your prescriptions.
What Are March-In Rights?
When an invention, such as a drug, is created with taxpayer funding, the Bayh-Dole Act allows the government to take action if the medication is not available to the public at a reasonable rate. A federal agency can grant a compulsory license to another company. This would allow that company to create generic versions of the same medication but at lower prices.
By bringing in another company, the government is adding competition to the market. This would allow for better rates, making medications more affordable for everyone. Taking this step could also offer a tool to deter pharmaceutical companies from pricing their drugs too high in the future, too, since they risk the same steps.
What Are the Drawbacks of March-In Rights?
As beneficial as this provision of the Bayh-Dole Act can be, there’s also a possibility that it could backfire. Pharmaceutical companies could hike prices early on so that they can recuperate their investments as quickly as possible before the government steps in. Since the march-in rights process takes time to enact, people could struggle with higher rates for months or years.
Pharmaceutical companies could also reduce the medications they create using taxpayer funding. Investors might choose not to get involved in these projects because of the risks of the government coming in and forcing prices down.
Companies could also choose to work only with private businesses so that the medications they create will not be subject to march-in rights. Privately-funded drugs could be priced as high as the companies choose without much oversight.
Could March-In Rights Backfire on Patients?
President Trump has recently signed Executive Order 14332, which tightens approval of grants and requires the appointment of senior officials to assess whether each grant aligns with the administration’s focus.
The Department of Commerce has already threatened to pull grant funding from Harvard University. Other universities and research centers are concerned about filing new grant requests for innovative drugs for fear of having any existing grant funding pulled.
March-in rights signal that there will be more government intervention and oversight, potentially curbing research and innovation. There will also be the need for biotech firms and universities to license their inventions, which creates costs that will be passed down to consumers.
Pharmaceutical companies can also switch their strategies. They can set aside government-funded projects and increase rates as much as possible to make their investment back quickly.
All of this means that prices are more likely to increase than decrease in the near future. Your medications could become even more expensive.
Get Affordable Access to Prescription Medications
Simplefill is a full-service prescription assistance company that researches, qualifies, and maintains patients’ enrollment in all sources of assistance available to them.
Apply today by calling 877-386-0206. A caring Simplefill representative will contact you within 24 hours to discuss your application and, if qualified, enroll you in the program.
Frequently Asked Questions
Learn more about the impact of march-in rights on drug pricing and what your options may be.
How Quickly Will March-In Rights Lower Drug Prices?
The process of enacting march-in rights can take time and will likely lead to legal battles, so it’s not likely that drug prices will drop any time soon. Consumers will still struggle to afford their medications for a significant amount of time.
How Often Have March-In Rights Been Used for Lowering Drug Prices?
March-in rights are rarely used. They are challenging to defend in court, and the government hesitates to interfere with the free market.
How Can I Afford My Prescription Medications This Month?
If you are struggling to afford your medications, patient assistance programs at Simplefill provide the support you need. We can help you find all of the discounts you may be eligible to receive, and then we apply for you so that you have a better chance of being accepted.
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