RELEASE: New Report Exposes PhRMA’s Misinformation Campaign To Undermine 2022 Prescription Drug Law

WASHINGTON, D.C. — A new report from Patients For Affordable Drugs reveals that the Pharmaceutical Research and Manufacturers of America (PhRMA) and its allies have spent heavily on advertisements – based on misleading and at times blatantly false claims – designed to undermine the 2022 prescription drug law – a law that is already lowering drug prices and saving money for patients across the country.

The report, “Fiction vs. Fact: PhRMA’s False Claims About ‘Unintended Consequences’ of the Inflation Reduction Act,” details how PhRMA has pushed misinformation through more than $235,800 in digital ads falsely claiming that the law will increase costs, reduce access, limit insurance options, and stifle innovation. This figure only accounts for social media ad spending—the full scope of PhRMA’s misinformation campaign is even larger, as the industry has also invested in other forms of advertising and lobbying to attack the law. Despite industry claims, analyses confirm the Inflation Reduction Act (IRA) is delivering real savings for millions of Americans while ensuring the pharmaceutical industry continues to see returns on investment and has the resources to develop new treatments and innovations.

Yesterday, P4AD and AARP hosted a media briefing to expose and debunk misinformation pushed by PhRMA and defend the law which is lowering costs for patients and taxpayers alike. You can watch that briefing here.

“This report lays out the truth: the drug industry has once again resorted to using scare tactics to mislead patients and policymakers to protect its profits and reestablish complete industry control over drug prices,” said Merith Basey, Executive Director of Patients For Affordable Drugs. “The 2022 prescription drug law is already delivering relief to patients on Medicare by capping insulin at $35, reducing out-of-pocket costs, and lowering prices on certain high-cost medications – yet PhRMA has no qualms sowing fear and confusion in an attempt to undermine the law. Patients fought hard for these reforms and won’t fall for Big Pharma’s fearmongering as it tries to put its exorbitant profits over people’s lives and livelihoods.”

Key findings from the report include:

• False claim: The IRA will increase drug prices.
  • Fact: The law lowers prices by allowing Medicare to negotiate lower prices on up to 60 high-cost drugs and penalizes drugmakers for unjustified price hikes. In addition to capping insulin costs and out-of-pocket costs.
• False claim: The IRA will limit patient access to medications.
  • Fact: Medicare Part D formularies for 2025 remain stable, with no major changes to drug coverage or tier placement.
• False claim: The IRA will reduce insurance options for seniors.
  • Fact: Medicare Part D plan options remain stable, with an average of 48 plans available to beneficiaries in 2025. More seniors now qualify for the low-income subsidy, ensuring better affordability.
• False claim: The IRA will stifle innovation.
  • Fact: Drug companies continue to see strong profits, invest in research, and bring new drugs to market.

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Patients For Affordable Drugs is the only national patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs. To learn more, visit PatientsForAffordableDrugs.org.