2016-14

Biopharmaceutical Innovation

REPRESENTATIVE ERIC ESTEVEZ (NH) HEALTH TASK FORCE

WHEREAS, biopharmaceutical innovation is a major contributor to improvements in better health and increased life expectancy in the United States; and

WHEREAS, biopharmaceuticals account for, on average, only 10% of healthcare expenditures in the U.S. compared with hospital and physician services, which account for more than 50% according to the Centers for Medicaid and Medicare Services; and

WHEREAS, when a branded biopharmaceutical loses patent protection, it becomes “generic” and the value of that innovation dramatically declines; and

WHEREAS, generic medicines account for 90% of prescriptions and continue to add enormous value to society in perpetuity; and

WHEREAS, no other part of the healthcare sector offers patients the same reduction in cost over time; today’s expensive hospital admission is tomorrow’s even more expensive hospital admission; and

WHEREAS, biopharmaceuticals are responsible for reducing overall healthcare costs; and

WHEREAS, a small percentage of truly sick patients require higher-cost biopharmaceuticals for possible cures or for the management of serious illnesses such as cancer; and

WHEREAS, such patients end up paying a greater percentage of the cost of their medicines than for a visit to an emergency room or a hospitalization; and

WHEREAS, policy makers are asked to address the high cost of healthcare, insurance premiums and biopharmaceuticals for both society and patients; and

WHEREAS, cost-containment polices may impede future biopharmaceutical innovation and their continued enhancements to quality of life and longevity; and

WHEREAS, inefficiencies across the healthcare system account for $910 billion (34%) of healthcare spending;
THEREFORE BE IT RESOLVED, the focus of lowering health care costs should be on expenditures in all parts of the healthcare system, not just on biopharmaceuticals; and

THEREFORE BE IT RESOLVED, impediments to biopharmaceutical innovation will only result in increasing current and future healthcare expenditures; and

BE IT FURTHER RESOLVED, that the National Hispanic Caucus of State Legislators (NHCSL) supports policy makers evaluating the societal benefit biopharmaceuticals have provided and will provide in future years including improvements in patient life expectancy, quality of life and overall well-being.

THIS RESOLUTION WAS ADOPTED ON AUGUST 11, 2016, AT THE NHCSL EXECUTIVE COMMITTEE & BUSINESS BOARD OF ADVISORS MEETING HELD IN CHICAGO, IL.

Sponsor by: Representative Eric Estevez (NH)