Democrats Defend Healthcare Savings and Work to Reduce the Cost of Prescription Drugs

Denver, CO – Today, the Senate Health and Human Services Committee passed both SB20-119 and SB20-107, two bills aimed at reducing the cost of prescription drugs. At the same time, the Senate Finance Committee defeated SB20-145 which would have reversed healthcare savings for thousands of Coloradans. 

SB20-119, Expand Canadian Rx Drug Import Program works to increase the number of countries from which Colorado would be able to directly import prescription drugs. Currently, 80% of the active ingredients and 40% of the finished generic drugs used in the United States are manufactured overseas. Yet the price hikes that Americans see are the highest in the world. This bill would allow Coloradans to bypass the excessive markup from U.S. pharmaceutical companies and save a considerable amount on their medications. 

SB20-107, Drug Production Costs Transparency also fights outrageous prescription prices by exposing the inner workings of Big Pharma. As it stands, large drug companies operate in the shadows– unaccountable to the public as to where their cost and spending areas lie. This bill would require these corporations to disclose the truth about production costs and shine a light on the components of the process that drive the price of prescription drugs.

"The status quo of prescription drug prices is incredibly dangerous. People who need treatment are being forced to choose between their health and their economic survival. And this reality is pulling many families underwater," said Senator Ginal (D-Fort Collins). "The system is in desperate need of reform. Coloradans, like all Americans, already pay the highest drug prices in the world, and every year they are getting more and more expensive, not out of necessity, but out of greed."

In the past, pharmaceutical companies have attributed high prices to innovation, arguing that new and improved drugs are naturally more expensive. But a recent study published in Health Affairs complicates that idea. It suggests that costs have increased due to companies raising the price of already market-available drugs purely for the sake of profit and not investment.

SB20-107 will now be sent to Appropriations while SB20-119 heads to the Senate floor.

In a parallel effort, the Senate Finance Committee defeated a bill today aimed at repealing Colorado's reinsurance program. Since being enacted, the reinsurance program has effectively reduced insurance premiums on the individual market by an average of 20%. However, for some families that number has been much higher, especially for those living on the Western Slope.

"We need to build upon our successes in making healthcare more affordable, not dismantle them," said Sen. Gonzales (D-Denver). "Repealing our reinsurance program would be going backward and reneging on all of the relief that thousands of Colorado families are finally experiencing."