New Report Finds Pharma-Backed Provision in Tax Law Likely to Cost Far More than Previously Estimated

The Campaign for Sustainable Drug Pricing (CSRxP) recently spotlighted a report by the The Wall Street Journal (WSJ) that a pharma-supported policy in the One Big Beautiful Bill Act is likely to cost seniors and taxpayers far more than previously estimated. The policy was based on a bill called “The Optimizing Research Progress Hope And New (ORPHAN) Cures Act,” which helps brand-name drug manufacturers keep prices high on a whole category of their products.

The nonpartisan Congressional Budget Office (CBO) previously estimated this policy would cost $4.8 billion in higher prescription drug spending, but the WSJ notes that the CBO missed certain drugs (including Keytruda) when calculating the impact. But according to The Wall Street Journal, “The true tally of the new provisions could be far higher because CBO plans to re-evaluate its analysis.”

The article flagged several other blockbuster brand name drugs that would become exempt from solutions designed to lower drug prices because of this provision. CSRxP urges Congress to act to protect seniors and taxpayers from billions of dollars in higher prescription drug prices by repealing this harmful provision.