A few years ago, Congress passed the Inflation Reduction Act, which included a policy that has disincentivized innovation around vital, pill-based treatments. This policy, known as the “pill penalty,” allows medicine that comes in a pill form, like a tablet or capsule, to be eligible for government price setting years before other kinds of treatments.

Why is this a problem?

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

  • Pills are essential in the treatment of many diseases like cancer and mental illnesses due to their unique therapeutic properties, such as the ability to cross the blood-brain barrier. 
  • In addition, pills offer convenience, especially for patients in rural communities, as they minimize travel to the doctor’s office.
    
    

• The pill penalty discourages researchers from developing medicines that come in pill form. Investments in these medicines have already dropped nearly 70% since the IRA was introduced.

• The pill penalty is expected to lead to higher out-of-pocket costs for seniors.

A bipartisan solution: The EPIC Act

• Lawmakers in Congress have introduced The Ensuring Pathways to Innovative Cures (EPIC) Act (H.R.1492/S.832) 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.