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

September 9, 2025

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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.

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June 19, 2026

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legislation

Bicameral Patients before Monopolies Act reintroduced

On May 13, bipartisan lawmakers in the House and Senate reintroduced the Patients Before Monopolies (PBM) Act (S.4509/H.R.8779), legislation that would prohibit common ownership of PBMs, insurers, and pharmacies. Sponsored by Sens. Warren (D-MA) and Josh Hawley (R-MO) alongside Reps. Diana Harshbarger (R-TN) and Jake Auchincloss (D-MA), the bill would require impacted organizations to divest […]
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June 10, 2026

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legislation

CMS announces ePA acceleration initiative, democrats seek to repeal WISeR Model

The Centers for Medicare & Medicaid Services (CMS) is advancing its electronic prior authorization (ePA) efforts through a newly established Electronic Prior Authorization Acceleration initiative to address key challenges and drive solutions ahead of 2027 requirements. To date, 29 health care organizations – including health systems, electronic health record developers, physician practices, networks, and digital health […]
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June 10, 2026

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