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.

Initiatives

Calls grow for Drug Patent reform

In a recent blog post, the Pharmaceutical Care Management Association (PCMA) highlighted increased attention to pharmaceutical companies’ abuse of drug patents. Last month, the Supreme Court unanimously ruled in favor of a generic drugmaker in a “skinny labeling” case, a victory for patients. Skinny labels allow generic and biosimilar competitors to launch products for non-patented indications, helping accelerate […]
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August 11, 2026

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perspectives

AHIP calls for Bipartisan reform to address health care cost drivers

On July 23, AHIP President and CEO Mike Tuffin wrote an opinion piece in The New York Times saying, “common-sense bipartisan reforms are needed to promote competition in care delivery and prescription drugs, protect consumers from providers and drugmakers’ anticompetitive practices and transition away from the perverse incentives of fee-for-service medicine.” Tuffin notes that health […]
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August 11, 2026

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Solutions

PCMA urges preserving patient access and flexibility in new fertility benefits rule

PCMA recently submitted comments to HHS, DOL, and the Treasury (the Departments) in response to the proposed rule establishing a new category of limited excepted benefits for fertility services. PCMA supports the Departments’ goal of expanding access to fertility care while encouraging employer innovation but urged several targeted refinements to ensure the framework is operationally […]
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August 11, 2026

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