It's Time to Pass the CREATES Act

Out of control drug prices hurt everyone, from patients who need access to lifesaving medications, to small business who find it hard to keep up with the skyrocketing price of prescription drugs for their employees, to taxpayers who pay for important government programs like Medicare and Medicaid.

The CREATES Act is a bill that encourages competition from generic drugs, would save taxpayers $3.8 billion, and would save patients billions more each year.

Competition from generic drugs is the one surefire way to bring down the cost of prescription drugs. But some brand name drug manufacturers abuse the Food and Drug Administration’s (FDA) regulatory rules in order to keep generic drugs off the market and keep drug prices artificially high.

In order to make a safe and effective generic drug, generic manufacturers need to conduct extensive testing that complies with FDA regulations. But, because generic competition means less profit for manufacturers of brand name drugs, some brand name manufacturers deny generic manufacturers the ability to purchase samples of drugs to conduct the necessary testing. This practice restricts competition in the market, leaves patients with fewer choices for their medications, and keeps prices high. As a result, patients may be at the mercy of a single drug company for the medication they need to stay healthy, and that company is free to set the price for the medication however they please. Such practices make medicines unaffordable and drive up health care expenses for everyone.

The CREATES Act is a bipartisan bill that would end these regulatory abuses and encourage generic competition for off-patent brand name drugs. It would prohibit brand name manufacturers from denying samples to generic manufacturers for the purpose of thwarting competition. The CREATES Act is supported by dozens of organizations and Members of Congress from both parties:

  • Senator Patrick Leahy (D-VT)
  • Senator Chuck Grassley (R-IA)
  • Senator Amy Klobuchar (D-MN)
  • Senator Mike Lee (R-UT)
  • Senator Dianne Feinstein (D-CA)
  • Senator Claire McCaskill (D-MO)
  • Senator Susan Collins (R-ME)
  • Senator John McCain (R-AZ)
  • Senator Richard Blumenthal (D-CT)
  • Senator Sheldon Whitehouse (D-RI)
  • Senator Tom Cotton (D-AR)
  • Senator Richard Durbin (D-IL)
  • Senator Ted Cruz (R-TX)
  • Senator Rand Paul  (R-KY)
  • Senator Maggie Hassan (D-NH)
  • Senator John Kennedy (R-LA)
  • Senator Tina Smith (D-MN)
  • Senator Lisa Murkowski (R-AK)
  • Senator Tammy Baldwin (D-WI)
  • Senator Steve Daines (R-MT)
  • Senator Angus King (I-ME)
  • Senator Lindsey Graham (R-SC)
  • Senator Sherrod Brown (D-OH)
  • Senator Todd Young (R-IN)
  • Senator Debbie Stabenow (D-MI)
  • Senator Mike Rounds (R-SD)
  • Senator Jon Tester (D-MT)
  • Senator Joni Ernst (R-IA)
  • Senator Robert Menendez (D-NJ)

 

  • Representative David Cicilline (D-RI)
  • Representative Peter Welch (D-VT)
  • Representative Todd Rokita (R-IN)
  • Representative Steve Cohen (D-TN)
  • Representative Marcy Kaptur (D-OH)
  • Representative Francis Rooney (R-FL)
  • Representative Mike Gallagher (R-WI)
  • Representative Carol Shea-Porter (D-NH)
  • Representative John Duncan (R-TN)
  • Representative Eleanor Holmes Norton (D-DC)
  • Representative John Culberson (R-TX)
  • Representative Lloyd Doggett (D-TX)
  • Representative Dave Brat (R-VA)
  • Representative Bennie Thompson (D-MS)
  • Representative Jan Schakowsky (D-IL)
  • Representative Bob Gibbs (R-OH)
  • Representative Peter DeFazio (D-OR)
  • Representative Andy Barr (R-KY)
  • Representative Beto O’Rourke (D-TX)
  • Representative James Renacci (R-OH)

Because generic competition means significant price reductions for patients, job creators, and taxpayers, the anticompetitive abuses that the CREATES Act would end result in enormous unnecessary costs that burden the entire healthcare system. We thank the sponsors of this important legislation and encourage Congress to pass this bipartisan bill as soon as possible.