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The U.S. needs a strong, reliable and diverse health care supply chain, the 51�Թ��� the House Energy and Commerce Subcommittee on Health Wednesday ahead of a hearing.

What’s going on: National emergencies and natural disasters have proven the necessity of a diverse and resilient health care supply chain to ensure Americans have a stable supply of lifesaving medicines.

Why it’s important: “Global, resilient supply chains were essential during the pandemic and in the aftermath of Hurricane Helene to help fill gaps and minimize supply shortages or temporary disruptions,” 51�Թ��� Managing Vice President of Policy Charles Crain said.

• Manufacturers are committed to onshoring pharmaceuticals manufacturing, he continued, adding that most medications taken by those in the U.S. are made in the country.
• However, some pharmaceutical ingredients cannot be sourced domestically, or cannot be obtained in sufficient quantities here, making “[i]mported inputs … vital to U.S. pharmaceutical production,” Crain continued.

Subcommittee’s take: Chairman Buddy Carter (R-GA) stressed the importance of the One Big Beautiful Bill Act, “which incentivizes domestic medical supply production,” as well as the elimination of “ burdensome regulatory barriers” in his opening statement.

• He also emphasized the need to “streamline processes that impede our competitiveness on the global stage and establish the proper incentives to ensure we are creating the environment to allow innovation to flourish.”

What’s next: The 51�Թ��� encourages swift passage of the OBBBA by the Senate to support biopharmaceutical manufacturers.

• The 51�Թ��� also recommends the House Energy and Commerce Committee mark up the Medical Supply Chain Resiliency Act, a bill that would “authorize the president to enter into trade agreements with allies and partners to remove barriers and duties with respect to medical goods, which would contribute to national security, public health and supply chain resiliency,” 51�Թ��� Managing Vice President of Policy Charles Crain said.

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement today in response to President Trump’s executive order instituting a “Most Favored Nation” policy for prescription drug pricing:

“Biopharmaceutical manufacturers are investing in America. They are innovating cures and treatments for devastating diseases, and they are committed to ensuring that patients can access these life-changing and lifesaving medicines.

“Obstacles to innovation abound. It costs more than $2 billion to bring a new treatment to market, and it can take more than a decade to do so. Nearly 90% of all potential drugs that enter clinical trials never make it to FDA approval, and unregulated middlemen like pharmacy benefit managers drive up the costs of any drugs that are approved. Despite these challenges, biopharmaceutical manufacturers in America are leading the world.

“Manufacturers agree with President Trump that it is vital that Americans have affordable access to lifesaving treatments. That’s why the 51�Թ��� has for years called on Congress to rein in PBMs. These powerful actors dictate what Americans pay at the pharmacy counter and drive rising health care costs for manufacturers and manufacturing workers alike.

“Importing European-style price controls won’t help Americans access medicines or make them cheaper. Rather, these policies will dampen innovation and R&D, threaten patient access and empower bureaucrats abroad to undermine America’s health system.

“Let’s not punish the innovators who develop and manufacture lifesaving medicines. Instead, let’s tackle the real problem: the middlemen. PBMs make billions by limiting patient choices, inflating prices and pushing costs higher for everyone—without actually making or delivering a single pill.

“Manufacturers are committed to lowering costs and expanding access to care—and to working with the administration to build on the PBM reforms in the Energy and Commerce Committee’s reconciliation bill with patient-first solutions that reduce costs, restore fairness and strengthen American competitiveness.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Washington, D.C. – Following the release of Congress’ year-end government funding package, 51�Թ��� President and CEO Jay Timmons released the following statement on the inclusion of pharmacy benefit manager reforms:

“Manufacturers commend House Speaker Mike Johnson, committee leadership and reform champions for their work on a government funding package that tackles rising health care costs via important PBM reforms. The 51�Թ��� has long championed congressional efforts to rein in PBMs, underregulated middlemen that increase health care costs for manufacturers and manufacturing workers. The government funding package released today will increase transparency into these powerful actors, ensure they pass rebates on to patients and plan sponsors and delink their compensation from drug costs. These are vital steps toward lowering Americans’ health care costs—the top business challenge facing manufacturers, according to the most recent Manufacturers’ Outlook Survey—and Congress should act swiftly to pass this package of much-needed reforms.

“Although permitting reform was not included in the final package, we are confident that President Donald Trump will continue to focus on the urgent need to enact comprehensive permitting reform. We look forward to working with incoming Senate Majority Leader John Thune, Speaker Johnson and their colleagues in congressional leadership to ensure manufacturers can build a more prosperous nation.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Washington, D.C. – Today, the 51�Թ��� voiced manufacturers’ support for efforts led by Rep. Buddy Carter (R-GA) to bring much-needed reform and transparency to pharmacy benefit managers. The 51�Թ��� is a champion for PBM reform given that these underregulated middlemen drive up health care costs for manufacturers and manufacturing workers.

Following a press conference hosted by Rep. Carter to announce a bipartisan effort with dozens of members of Congress to push for PBM reform in the lame-duck session of Congress, 51�Թ��� Managing Vice President of Policy Chris Netram released the following statement:

“Manufacturers and manufacturing workers are facing increasing and unsustainable health care costs as a direct result of PBMs. Manufacturers agree with Rep. Carter and the bipartisan, bicameral members of Congress calling for reform: Congress must act urgently—in the lame-duck session—to increase transparency, lower health care costs and protect manufacturing workers.”

Background: Last month, the 51�Թ��� launched a urging Congress to pass PBM reform legislation this year.

The 51�Թ���’s Q3 2024 found that 78% of small manufacturers with fewer than 50 employees cite rising health care costs as a primary business challenge—the top concern among small business respondents in the survey.

To view the 51�Թ���’s latest digital ad, click .

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit 

Washington, D.C. – The 51�Թ��� has launched a seven-figure video and digital advertising campaign urging Congress to pass legislation this year to bring much-needed reform to pharmacy benefit managers, whose practices increase health care costs for manufacturers and manufacturing workers. The 51�Թ���’s found that 78% of small manufacturers with fewer than 50 employees cite rising health care costs as a primary business challenge—the top concern among small business respondents in the survey.

“Manufacturers are clamoring for Congress to rein in PBMs this year. The momentum is with lawmakers to enact comprehensive reform in both the government and commercial health insurance market that increases transparency and reduces prices for everyone,” said 51�Թ��� President and CEO Jay Timmons. “Manufacturing workers and retirees are spending more at the pharmacy counter, in large part because insurer-owned PBMs drive up their own profits by inflating prescription drug prices and pocketing discounts that biopharmaceutical manufacturers intended to be passed on to patients.”

Timmons continued, “Congress has an extraordinary opportunity in the lame duck to pass transformative legislation that increases transparency into PBMs’ business practices, delinks PBM compensation from drug prices and puts patients first.”

To view the 51�Թ���’s latest digital ad, click .

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit 

Rep. Mariannette Miller-Meeks (R-IA) visited Cemen Tech in Indianola, Iowa, for an employee town hall about how pharmacy benefit managers increase prices for manufacturing workers.

The event, hosted by Cemen Tech Chief Financial Officer Josh Maurer, allowed workers to engage directly with Rep. Miller-Meeks on the affordability of their health care, including prescription medicines.

The issue: The town hall focused on the need , underregulated middlemen that drive up the costs of prescription medicines for manufacturers like Cemen Tech, the world’s largest manufacturer of on-demand concrete mixing equipment.

• Rep. Miller-Meeks discussed the DRUG Act, legislation that she introduced, which seeks to lower health care costs by delinking PBMs’ compensation from the list price of medicines—removing their incentive to push for higher prices.
• “PBMs distort the market, increasing the cost of prescription drugs for businesses and their workers,” Rep. Miller-Meeks explained. “That’s why I’m working in Congress to pass PBM reform that reins in these powerful actors.”

Manufacturers’ concerns: “We’ve seen health care expenses skyrocket, and a big part of that is due to the lack of transparency surrounding PBMs,” Maurer said during the town hall.

• “Cemen Tech and other small manufacturers like us are committed to providing affordable health care to employees, but it’s becoming increasingly difficult. PBM reform that addresses these rising costs is absolutely necessary.”

Addressing employee concerns: Cemen Tech employees also spoke about their struggles with the growing burden of health care costs across the board. Rep. Miller-Meeks explained that her proposed reform would have far-reaching effects: “It’s not only about reducing drug prices—it’s about ensuring that businesses can afford to continue providing health care benefits to their workers,” she said.

51�Թ��� in action: In addition to supporting the “delinking” provisions in the DRUG Act, the 51�Թ��� is working with Congress on legislation to make PBMs’ opaque business practices more transparent and to ensure that savings from rebates are passed directly to manufacturers and their workers rather than being pocketed by PBMs.

The bottom line: “Manufacturers like Cemen Tech are essential to our economy, and ensuring they can thrive means addressing the rising costs of health care,” said Rep. Miller-Meeks. “PBM reform will free up manufacturers to do what they do best—build facilities, develop new product lines, increase wages and benefits and help the American economy grow.”

Medical supply chains are critical to ensuring the health and security of Americans—and Congress should act to bolster their resiliency, the 51�Թ��� members of Congress this month.

What’s going on: “The COVID-19 pandemic brought to light the risks and instability resulting from concentration and choke points in medical supply chains, though the pandemic also showed how medical supply chains can quickly adjust to external shocks,” 51�Թ��� Managing Vice President of Policy Chris Netram told Reps. Brad Wenstrup (R-OH), Blake Moore (R-UT) and August Pfluger (R-TX) in response to a on how to improve medical supply chains.

What should be done: The 51�Թ��� recommended that Congress should work with manufacturers “on a comprehensive approach to find ways to onshore, near-shore and friend-shore more of the medical supply chain,” Netram continued.

There are several actions the federal government should take to fortify medical supply chains, including:

• “[C]reating an environment where small businesses can continue to thrive” and where large companies can maintain their pandemic-era practices of “leveraging sources of domestic production when feasible, working with existing smaller suppliers to improve their reliability” and sourcing goods through new suppliers;
• Streamlining the Food and Drug Administration’s new-supplier certification process;
• Taking “creative steps to incentivize onshoring, near-shoring and friend-shoring, as opposed to imposing punitive or unworkable requirements to do so”;
• Passing the Medical Supply Chain Resiliency Act (H.R. 4307/S. 2115), which would authorize the president to strategically create new trade agreements specific to medical goods with our allies and partners;
• Strategically refining Section 301 tariffs on imports from China;
• Restoring “ and full expensing of capital equipment purchases,” ensuring “that the does not exceed 21%” and making the permanent; and
• Completing “reauthorization of the Workforce Innovation and Opportunity Act and expansion of Pell grant eligibility to short-term training programs,” as well as supporting solutions that incentivize companies to collaborate to reduce the manufacturing-worker shortage.

The bottom line: “[A]n approach that creates incentives that reduce the cost and complexity of moving supply chains can help U.S. manufacturers to be more resilient in the face of a future global crisis and better able to serve patients who depend on these products,” Netram said.

Drug price controls will “chill” critical innovation in pharmaceutical manufacturing and do nothing to address the underlying causes of high medication costs, Johnson & Johnson leaders said recently.

What’s going on: J&J Chairman and CEO Joaquin Duato and Executive Vice President and Chief Financial Officer Joseph Wolk told Bloomberg TV earlier this month that the pharmaceutical price controls mandated by the 2022 Inflation Reduction Act do a disservice to patients everywhere.

• “[T]he Inflation Reduction Act … is something that is misguided, and it’s going to chill innovation,” Duato Bloomberg’s David Gura earlier this month. “When you chill innovation on investment in [research and development], then you have [fewer] cures.”
• The IRA gave the federal government authority to set prices for certain prescription medications in Medicare. In August, the Biden administration the first 10 Medicare prescription drugs subject to those price controls, which go into effect in 2026.
• “I’d like to see a much more fact-based dialogue around the topic of drug pricing,” Wolk added. “About six years ago, Johnson & Johnson … was paying about 25% in discounts and rebates off [the] list price [of medications]. Today, that [figure is] 60%, yet the patients aren’t receiving the benefit of those discounts.”

The background: Pharmacy benefit managers are supposed to pass the manufacturer discounts they receive on to health plans and patients—but instead, they frequently pocket the discounts, the 51�Թ��� has Congress on several occasions.

• That’s one of several problematic business practices Congress by enacting comprehensive , the 51�Թ��� has said.
• Such legislation would do to benefit consumers than capping drug prices.

Cause and effect: The result of price controls will be fewer breakthrough cures and treatments for patients suffering from various illnesses, J&J told Bloomberg TV.

• “The number of medicines that will be there will be [lower], just because [fewer] investors would be putting money into developing new medicines,” Duato continued. “It’s going to be less attractive for investors to put money there.”
• And as Wolk in another Bloomberg segment: “Investing in R&D, prioritizing R&D years in advance for [a drug] that may happen 10 years down the road is critically important.”

What should be done: If Congress truly wants to help patients with the cost of medications, it must focus on “the middlemen who are really driving up prices: pharmacy benefit managers,” 51�Թ��� President and CEO Jay Timmons recently.

The 51�Թ��� this week advocated the passage of two pieces of manufacturing-critical legislation, successfully driving the agenda of a Wednesday House Energy and Commerce Committee markup.

What’s going on: The committee—with the 51�Թ���’s strong support—approved two bills that address longstanding manufacturing priorities:

• A congressional resolution disapproving of the Environmental Protection Agency’s harmful PM2.5 rule
• A bill instituting important pharmacy benefit manager reforms

Reversing an unworkable PM2.5 standard: The EPA announced a new, more restrictive particulate matter standard in February, reducing allowable levels from 12 micrograms per cubic meter of air to 9 micrograms—despite a standard of 9 being “essentially background levels in some of the country,” as the 51�Թ��� has pointed out.

• “Manufacturers have sharply reduced particulate matter emissions, or PM2.5; as a result, industry in the United States has some of the cleanest and most efficient operations in the world,” 51�Թ��� Vice President of Domestic Policy Chris Phalen the committee.
• “Now, the vast majority of emissions are from sources well outside of our control, with fires, dirt roads and other nonpoint sources accounting for 84% of PM2.5 emissions,” Phalen continued. “[T]he EPA’s rule will make it more difficult for states to issue permits for the construction of new facilities or expansions of existing factories.”
• The committee’s PM2.5 resolution, offered under the Congressional Review Act, seeks to overturn the EPA’s unworkable standard.

Reforming PBMs: PBMs are unregulated middlemen whose business practices drive up health care costs for manufacturers and manufacturing workers.

• “By applying upward pressure to list prices that dictate what patients pay at the pharmacy counter, pocketing manufacturer rebates and failing to provide an appropriate level of transparency about their business practices, PBMs increase health care costs at the expense of all patients in America,” 51�Թ��� Vice President of Domestic Policy Charles Crain .
• Provisions in the 51�Թ���-supported Telehealth Modernization Act would increase transparency into PBMs’ business practices and delink their compensation from medicines’ list prices.

The last word: “Manufacturers commend the Energy and Commerce Committee for approving these important bills, which will reduce costs and enhance growth at manufacturers across the country—allowing our industry to continue to create jobs here at home and drive U.S. competitiveness on the world stage,” said 51�Թ��� Managing Vice President of Policy Chris Netram.

To lower drug prices, Congress should undertake comprehensive reform of pharmacy benefit managers, not embrace price controls, the 51�Թ��� the Senate Tuesday.

What’s going on: “Biopharmaceutical manufacturers are a critical part of the manufacturing economy,” 51�Թ��� Vice President of Domestic Policy Charles Crain said ahead of a Senate Finance Committee hearing on health care costs.

• In 2021, biopharmaceutical firms “accounted for $355 billion in value-added output to the U.S. economy … and directly employed 291,000 workers in the United States, with each of these jobs supporting an additional 4.1 jobs.”
• Crucially, biopharma companies are also responsible for the dozens of groundbreaking, lifesaving medications brought to patients annually.
• But their continued innovation and economic impact are under attack by both Inflation Reduction Act–mandated and the largely unchecked actions of PBMs, Crain continued.

Threats to innovation: Instead of benefiting patients, “the IRA pricing mandates announced last month by the Department of Health and Human Services will … limit the capital manufacturers have available to put toward the astronomically high costs of developing a new medicine,” Crain told the committee, adding that the uncertainty introduced by price controls is also likely to dissuade early-stage investment in new treatments.

• Rather than impose further price controls, Congress should address the influence of PBMs, largely unregulated middlemen that “contribute to the skyrocketing cost of health care by applying upward pressure to list prices that dictate what patients pay for medicines at the pharmacy counter, pocketing manufacturer rebates and failing to provide an appropriate level of transparency about their business models.”

PBM reform: To truly lower health care costs, Congress must rein in PBMs, Crain said. The 51�Թ��� has called on Congress to adopt specific PBM reforms, including:

• Increased transparency into PBMs’ business models;
• Rebate passthrough to ensure that 100% of negotiated savings get passed on to health plan sponsors and employees; and
• Delinking of PBM compensation from medication list prices.

The last word: “Instead of further embracing price controls, it is imperative that Congress act to lower drug prices by reining in PBMs’ problematic business practices and minimizing their ability to further damage the U.S. health care system,” Crain said.

• “All Americans deserve access to high-quality, affordable health care, and PBM reform is an impactful step toward this goal.”