A few years ago, Congress passed the Inflation Reduction Act, which included a harmful policy that threatens access to essential treatments. This policy, known as the “pill penalty” unfairly targets medicines that typically come in pill form—like capsules and tablets—by making them eligible for government price setting years before other kinds of medicines.

Why is this a problem?

• In the long run, the pill penalty will reduce treatment options and make it harder for patients to get essential treatments.

• Pills are essential in the treatment of many diseases like cancer and mental illnesses due to their unique therapeutic properties.

• The pill penalty discourages researchers from developing medicines that come in pill form. Already, investments in these medicines have dropped nearly 70%. 

• The pill penalty is expected to lead to higher out-of-pocket costs for seniors as PBMs and insurers, who make less money off price-set medicines, are planning to adjust their coverage policies to make beneficiaries pay more.

A bipartisan solution: The EPIC Act

• Lawmakers in Congress have introduced The Ensuring Pathways to Innovative Cures (EPIC) Act to help fix the pill penalty. This legislation would align the timeline for price setting for pills with other treatments.

• It is a critical step toward fixing the pill penalty and protecting patient access to innovative, affordable and convenient treatment options while reinforcing our nation’s leadership in medical innovation. 

Your Voice Matters

When we penalize the development of pill-based medicines, we risk losing some of our best weapons against disease and put patients at risk. Act now—contact your legislator today and urge them to support the EPIC Act.