Horsford, Norton, Raskin, Spanberger Introduce the SPIKE Act to Stop the Skyrocketing Cost of Prescription Drugs

WASHINGTON, D.C. — Today, Representatives Steven Horsford (D-NV-04), Eleanor Holmes Norton (D-DC), Jamie Raskin (D-MD-08), and Abigail Spanberger (D-VA-07) introduced the Stopping the Pharmaceutical Industry from Keeping Drugs Expensive (SPIKE) Act, which would require drug manufacturers to publicly justify high prices for new pharmaceutical drugs or large price increases for existing drugs. Today, Representative Horsford also introduced the Capping Drug Costs for Seniors Act, which would cap out-of-pocket costs for seniors enrolled in Medicare Part D.

"Over the last four years, Nevada has led the nation on drug pricing transparency by requiring manufacturers of certain medications to justify high price increases to the state. I'm excited to introduce the SPIKE Act and bring the Nevada model to the national level," said Representative Steven Horsford. "Working families and seniors have long struggled with rising drug prices. The SPIKE Act will hold drug companies accountable for high price increases and stop unconscionable price-gouging."

"The rising cost of prescription drugs is a major concern to D.C. and throughout the country," said Representative Eleanor Holmes Norton. "I am proud to reaffirm my support for the SPIKE Act, which enforces much-needed transparency in the pharmaceutical industry."

"The wealthiest society that has ever existed can maintain access to affordable medicine for all," said Representative Jamie Raskin. "Enormous hikes in drug prices should be justified, not normalized. The SPIKE Act will hold drug manufacturers accountable when they try to raise prices disproportionately and unnecessarily. I'm excited to work closely with Representatives Horsford, Norton and Spanberger to advance this critical piece of legislation."

"For too long, big pharmaceutical manufacturers have been able to drive up prescription drug prices behind closed doors. These drug companies should not get off the hook for raising the prices of life-saving medications with no explanation," said Representative Spanberger. "The skyrocketing cost of prescription drugs is a top concern for working families and seniors in Central Virginia, and increasing drug pricing transparency is an essential component in solving this crisis. The SPIKE Act would allow the federal government to hold big pharmaceutical companies accountable and shed light on the closed-door deals that drive up prescription drug prices."

The SPIKE Act would require manufacturers to report detailed information to the Secretary of the Department of Health and Human Services (HHS) for certain drugs if their prices exceed certain thresholds.

Beginning in 2023, if a drug price increases by more than 10 percent or $10,000 over one year, 25 percent or $25,000 over three years, or has a launch price higher than $26,000, the manufacturer would be required to submit an explanation to the HHS Secretary. The explanation could include information on expenses pertaining to developing, manufacturing, licensing, and marketing the drug.

The full text of the bill can be found here, and a one-page summary can be found here.

The SPIKE Act was first introduced by Congressman Horsford in the 116th Congress.

Media Contact
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