Rush Generic Drug Amendment Passes in Energy and Commerce Committee Markup

On the eve of an historic vote in the House Energy and Commerce Committee, Chairman Rush succeeds in securing bipartisan support for a measure that will save consumers billions of dollars in the cost of prescription drug medications.

WASHINGTON – This afternoon, by a voice vote of the Energy and Commerce Committee, U. S. Rep. Bobby L. Rush (IL-01) secured the adoption of an important amendment to the America's Affordable Health Choices Act of 2009 (H.R. 3200) that ensures consumers reap well deserved savings for their prescription drug medications.  If signed into law, the Rush amendment would eliminate the so-called "pay-for-delay" practice that allows drug manufacturers to delay the entry, into the market, of affordable generic drugs.

The amendment specifically prohibits brand name and generic drug firms from entering into agreements that settle patent infringement claims, except in certain prescribed instances.

Rush explained, "The existing regulatory framework established by the Hatch-Waxman Act created powerful incentives for makers of generic drugs to challenge brand name companies' patents, prior to their expiration. Excerpts of the statement he read into the record is as follows:

"Because these new generics threaten the patent-protected profits of brand name companies, brand name firms have responded by offering "pay-for-delay" settlements to generics firms. In doing so, it is their intention to safeguard their enormous profits and extend the time it takes for new generic versions to enter the market, which would dramatically drive down the costs for these drugs.

"Earlier entry by generics will save consumers billions of dollars. This would result in significant cost reductions and contain those costs in association with the health care reform package that we are now considering.

"The Congressional Budget Office has scored this amendment as savings for the Federal Government while prohibiting settlement agreements for patent infringement claims, except where the consideration received by the generic entrant relates to marketing of the new generic drug, prior to expiration of the patent.

"The amendment protects against unfair and deceptive acts or practices and an unfair method of competition under Section 5 of the Federal Trade Commission Act."As requested by the Minority at subcommittee markup, the amendment would require the disclosure of these settlement agreements to the Comptroller General for purposes of completing a General Accounting Office study.

"My Subcommittee on Commerce, Trade & Consumer Protection held a hearing on the bill, and passed it out of the subcommittee on June 3rd of this year.

"Thank you Mr. Chairman, and with that, I yield back the balance of my time.

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