UAW CAP - Issues

 

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Protecting Consumers

Protecting Consumers

Stretching Our Dollars Farther:
Access to Generic Drugs

As we all know, health care costs impose substantial burdens for the uninsured and underinsured. Even workers with adequate insurance suffer when health care costs continue to escalate. The use of generic drugs is one way to help contain rising health care costs. Generic drugs keep costs down without compromising quality.

 

 

 


About 15 years ago, Congress established the rules of the game for entry of generic drugs into the market. The Hatch-Waxman Act was designed to allow a fair patent life for brand name drugs to encourage continued research and development of important new drugs. At the same time, Hatch-Waxman allowed the immediate entry of a generic product once a patent has expired. This act has worked. Brand name companies have developed many new life-saving drugs and profits certainly haven’t suffered-the pharmaceutical industry is the most profitable in America.

However, it hasn’t stopped the brand names from taking actions to block quick entry of generics. Perhaps the most blatant of these actions has been the repeated attempt by many brand name companies to get Congress to extend the patents even longer for some popular drugs like Claritin, the No.1 prescribed antihistamine in America. Joining with consumer groups, the UAW organized other labor unions to oppose pending legislation (H. R. 1598, S.1172), which seeks to unfairly extend the patent of Claritin and other drugs. We will continue to work with our allies in the consumer movement to stop efforts by the brand names to block or slow the use of generic drugs.

 


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