Full Measure After Hours: Big Pharma’s Battle Against Drug Price Control

Introduction

In the April 17, 2025, episode of Full Measure After Hours, host Sharyl Atkisson delves into the extensive lobbying efforts undertaken by major pharmaceutical companies to thwart new drug price control initiatives. This episode, titled "After Hours: How much did Big Pharma spend to try to stop new drug price control initiatives? (From the Archives)," provides an in-depth analysis of the intersection between pharmaceutical lobbying, government policy, and the impact on American healthcare.

Background on Drug Price Control Initiatives

The conversation centers around the Inflation Reduction Act of 2022, a pivotal piece of legislation that marked the first significant attempt by the U.S. government to negotiate drug prices directly. This act targets ten highly profitable drugs, allowing the Centers for Medicare & Medicaid Services (CMS) to negotiate prices, a measure expected to lower costs for both Medicare and, by extension, private insurers.

Big Pharma’s Lobbying Efforts

Lisa Gilbert from Public Citizen provides critical insights into the aggressive lobbying strategies employed by Big Pharma. She reveals that companies like Bristol Myers Squibb, Johnson & Johnson, and Merck collectively spent approximately $43 million lobbying between July 2022 and July 2023 to influence the Inflation Reduction Act. Gilbert explains:

“[...] we were looking in advance of an important hearing that Bernie Sanders held in the help committee. He brought in three CEOs from Bristol Myers, Squibb, Johnson and Johnson, and Merck to talk about price gouging and how they had been attempting to influence the Inflation Reduction Act.”
[02:11] Lisa Gilbert

These companies mobilized extensive resources to oppose the legislation, fearing that government negotiations would undermine their profitability and control over drug pricing.

Implications of the Inflation Reduction Act

The Inflation Reduction Act's provision to negotiate drug prices represents a significant shift in U.S. healthcare policy. Gilbert highlights that this is one of the few instances where the Pharmaceutical Research and Manufacturers of America (PhRMA) has been effectively countered. The act targets single-source drugs without generic alternatives, starting with ten specific medications projected to affect millions of Americans:

“So the Inflation Reduction act does allow a series of older pharmaceuticals to be negotiated by CMS within the Health and Human Services division of the government. And so now there's an initial 10 drugs that have been put forth where we will see price negotiation drop the cost for regular Americans.”
[02:37] Lisa Gilbert

Impact on Medicare and Taxpayers

The episode underscores the substantial financial burden that high drug prices place on Medicare and, by extension, taxpayers. Cheryl Atkisson provides stark statistics:

“It is estimated that about 7.7 million Medicare patients took at least one of the 10 drugs we're talking about in 2022 at a cost to taxpayers of $46.4 billion that year alone.”
[11:06] Cheryl Atkison

She further details the costs associated with specific drugs like Xarelto and Eliquis, which collectively cost Medicare billions annually. The negotiation of these prices, set to begin in 2026, promises significant savings and broader impacts beyond Medicare, influencing private insurance pricing as well.

Campaign Finance and Influence

A critical aspect of the discussion addresses the opaque nature of campaign financing and its impact on policy. Advertising campaigns supporting or opposing drug price negotiations often mask their true funding sources, misleading the public. Gilbert emphasizes the need for greater transparency:

“Usually you can follow the money and follow disclosures to try to figure out who is behind the shell company or behind the nonprofit. But it's more work than an average citizen just watching TV wants to do. So something we've long advocated for is a deeper level of disclosure on an advertisement so you can understand where the money is coming from in terms of political parties.”
[07:16] Lisa Gilbert

This lack of transparency hinders public understanding and undermines democratic processes, allowing pharmaceutical companies to exert undue influence over legislation.

Legislation Efforts and Setbacks

The episode also touches upon former President Donald Trump's "Most Favored Nation Drug Policy," an executive order intended to cap drug prices by ensuring that the U.S. does not pay more for drugs than other countries. However, as Gilbert points out, this policy was never implemented, likely due to the formidable lobbying power of Big Pharma:

“I think, as you say, the initiative was never implemented. And, you know, we certainly don't think based on the amount of influence that pharmaceutical companies have, the money that is sloshing around, it makes sense that it was never implemented and they were able to forestall it.”
[09:47] Lisa Gilbert

Concluding Insights

Sharyl Atkisson wraps up the discussion by reiterating the broader implications of Big Pharma's lobbying efforts on American healthcare. The entrenched influence of pharmaceutical companies not only affects drug pricing but also shapes a wide array of health policies, often to the detriment of public welfare. The episode serves as a clarion call for increased government transparency and accountability in the face of powerful corporate lobbying.

Notable Quotes

• Lisa Gilbert [02:42]: “They did not like it and that is because it's the first time ever we've been able to negotiate drug prices.”

• Lisa Gilbert [05:58]: “Millions of dollars. In this case, 43 million in the period of time that we looked at.”

• Cheryl Atkison [11:06]: “So we're all paying these exorbitant costs for drugs.”

Conclusion

This episode of Full Measure After Hours offers a compelling exploration of the formidable challenges posed by Big Pharma’s lobbying in the realm of drug price control. Through expert interviews and meticulously presented data, Sharyl Atkisson provides listeners with a nuanced understanding of the legislative battles shaping the future of American healthcare.