WASHINGTON, DC – Today, U.S. Senator Jack Reed (D-RI) teamed up with Sherrod Brown (D-OH) and several colleagues in introducing legislation to penalize pharmaceutical companies that engage in price gouging without cause, leading to price spikes for patients who rely on medication to treat diseases ranging from cancer to opioid addiction.

The Stop Price Gouging Act would hold drug companies accountable for large price increases, and, according to Health Affairs Blog, would result in billions of dollars in savings for taxpayers. Nearly 28 million Americans have personally experienced a sudden spike in the price of their prescription drugs over the past year according to consumer reports.

The Stop Price Gouging Act would:

  • Require drug companies to report increases in drug prices, and justify the increase.
  • Penalize drug companies that engage in unjustified price increases with financial penalties proportionate to the price spike.  

“The purpose of prescription drugs is to allow Ohioans to live longer, healthier lives – not to line the pockets of Big Pharma executives,” said Senator Brown. “Too many Ohioans still struggle to afford the medicine they need, and often, the culprit is price gouging by big pharmaceutical corporations. It has to stop, and that’s why I’m introducing the Stop Price Gouging Act, to protect Ohioans from prescription drug price spikes and to require drug companies to report increases in drug prices, and justify their increases.”

 “Year after year, we continue to see astronomical increases in drug prices, and rarely is there a good reason offered for these price jumps. We need to bring some measure of transparency to prescription drug pricing.  This legislation will help hold drug companies accountable if they try to unfairly hike prices on medications that patients depend on,” said Senator Reed.

At least four pharmaceutical companies have already publically committed to limiting their own price increases. The bill would hold more drug companies accountable for jacking up the price of their drugs overnight.

Any revenues collected through the Stop Price Gouging Act would be reinvested in future drug research and development at the National Institutes of Health (NIH).

In 2015, Americans spent an all-time high of $324 billion on prescription drugs, with taxpayer dollars accounting for nearly 70 percent of this spending. According to Consumer Reports, nearly 28 million Americans have personally experienced a spike in the cost of their prescription medications over the past year. Under current law, pharmaceutical corporations can increase the price of their products without justification.

The Stop Price Gouging Act is also cosponsored by Kirsten Gillibrand (D-NY), Al Franken (D-MN), Maggie Hassan (D-NH), and Tom Udall (D-NM).