House Ways & Means Democrats Say Biologics Provision in USMCA Problematic

The chairman of the House Ways and Means Committee, its Trade Subcommittee chairman and all but four of the Democrats on the panel told U.S. Trade Representative Robert Lighthizer that biologics provisions in the new NAFTA concern them, because they could hamper Congress' ability to address the rising cost of health care. "Our concern is not that the new Agreement will change U.S. law. But at the same time, we do not want to be limited in addressing the current health care landscape, which is not working for many Americans," they wrote in a letter released the evening of May 3. "Our laws and regulations provide incentives and safeguards that encourage and allow generic competitors to enter the market when appropriate, lowering costs over time. As the health care industry evolves, Congress develops and sometimes revisits key legislation that sets out these rules, addressing the balance between innovation and access."

Many Democrats have said that approving the new NAFTA with the 10-year exclusivity period in place is contrary to what they ran on (see 1904020071). In this letter, they put that argument in writing. "In November, Democrats regained the majority in the House of Representatives on promises to ensure Americans will have better, more affordable access to health care, including prescription drugs. We are serving in the 116th Congress under that very clear mandate. As we review the new Agreement, we will be considering its terms through the lens of this mandate."

Rep. Lloyd Doggett, a Texas liberal who brought up biologics when Lighthizer testified earlier this year, did not sign onto the letter. Neither did Rep. Bill Pascrell, D-N.J., Rep. Brad Schneider, D-Ill., nor Stephanie Murphy, a moderate Democrat and freshman from Florida.