Statement by Chip Davis, President and CEO, GPhA, Regarding the FY2017 Federal Budget
Contact: Steve Arnoff 202.249.7113
WASHINGTON, DC (Feb 10, 2016) — “The Generic Pharmaceutical Association (GPhA) welcomes efforts in the Obama administration’s FY2017 budget to improve access to more affordable generic medicines. GPhA strongly applauds efforts to lower brand biologic exclusivity in order to increase competition from safe and effective biosimilar medicines.
Without generic drugs, Medicare and Medicaid costs would nearly double, according to the 2015 Generic Drug Savings in the U.S. report. As the Administration seeks to lower Medicare and Medicaid costs, one proven means is to encourage beneficiaries to use generic medicines, particularly the vulnerable Low Income Subsidy (LIS) population, where generic utilization falls below the national average. Efforts to expand generic utilization among the Medicare LIS population are projected by the Congressional Budget Office (CBO) to save $17.7 billion over 10 years.
It is also important to ensure that a fully-resourced FDA can carry out its mission, particularly to address the backlog of generic drug applications and properly manage its biosimilar review program.
Savings from generic drugs today help fund tomorrow’s health innovation. The best way to grow savings is by increasing competition from generic drugs. GPhA and its members look forward to working with the Obama administration to identify ways to lower health spending and increase access to safe, effective and more affordable generic drugs for millions of patients.”
GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals fill 88 percent of the prescriptions dispensed in the U.S. but consume just 28 percent of the total drug spending. Additional information is available at gphaonline.org. Follow us on twitter: @gpha.