For millions of families, November means it’s time to focus on choosing a healthcare plan. For too many people and businesses, the rising cost of prescription medications is making that season harder and harder.
David Mitchell, who has been living with an incurable blood cancer for more than a decade, relies on four drugs that carry a staggering list price of more than $1 million yearly.
While David is on Medicare, 155 million Americans receive health benefits through their employer, and large employers pay more than 80 percent of healthcare costs for their employees. Given that the cost of prescription drugs has long been the fastest-growing component of health benefit costs, jumping 8.4 percent in 2023, there is no doubt that employers, employees and patients alike are suffering from a lack of affordability.
The House of Representatives has an opportunity to tackle one of the most egregious tactics the pharmaceutical industry uses to keep drug prices high. Earlier this year, the Senate unanimously passed the Affordable Prescriptions for Patients Act, which would target “patent thicketing” — a strategy where drug companies file dozens or even hundreds of patents on a single drug to block competition.
Drug companies deliberately build these dense webs of overlapping patents, forcing potential competitors to navigate costly and time-consuming legal battles before they can bring lower-cost alternatives to market. This tactic has proven highly profitable for brand-name manufacturers — and devastating for patients who need affordable medications.
Data bears out the effect of this abuse. Research shows that between 2005 and 2015, 74 percent of drug patents issued were for drugs already on the market. Another study published this year in the Journal of the American Medical Association found that of the 100 best-selling drugs, nearly 80 percent obtained an additional patent to extend their monopoly period.
Opponents of patent reform claim these practices are simply an extension of research and development and that reforming the patent system would threaten intellectual property and jeopardize lifesaving advancements. The reality is that manufacturers spend just $20,000 to file each new patent while earning more than $50 million daily during one drug’s final patent period. This isn’t about protecting innovation — it’s about exploiting the patent system to extend monopolies far beyond the time needed to recoup R&D costs. The result is that patients are forced to pay exorbitant prices for medications they desperately need, often for years after the original patents expire.
An i-mak analysis highlights the benefits brand-name drug companies are enjoying by using the patent system to stave off competition from generics and biosimilars. Of the 12 best-selling drugs in the United States, the report found that four of the drugs have been on the market for 20 years, yet drugmakers are seeking to extend the patent life of those products. One drug, first authorized in 1985, is seeking protection until 2033 — meaning that the drug would legally avoid competition for 48 years. These tactics keep prices unaffordable for millions of patients, who are left choosing between paying exorbitant costs or going without the treatment they need.
Take Jacquie, a graphic designer who lives with Crohn’s disease. Since her diagnosis, Jacquie has relied on Stelara, a biologic drug that costs thousands of dollars monthly. While it has been her lifeline, its steep price tag hangs over her life, and she lives in constant fear of losing her insurance or experiencing a coverage change. If that happens, the high cost of one month’s treatment would be completely unaffordable. This financial strain is not a necessity but a byproduct of “patent thickets” used to block the entry of biosimilars.
Biosimilars and generic drugs could help patients, employers and taxpayers realize lower costs, but only if we reform the patent system so those drugs have a viable chance of getting to market. The potential for savings is significant. Generic and biosimilar drugs represent 90 percent of all U.S. prescriptions but account for only 13 percent of overall drug spending. Inaction is a decision that America literally cannot afford.
Our patent laws never intended to extend monopoly pricing in the way that occurs today. Brand name drug makers should no longer be allowed to hit the “snooze” button on the patent clock to avoid competition.
That’s why the Affordable Prescriptions for Patients Act is so important. It would help close one of the loopholes that big pharmaceutical companies use to manipulate the patent system, making way for the competition that is desperately needed to drive down drug prices. The bill has already passed the Senate, and now it’s up to the House to get it across the finish line.
