PILMA Chairman Issues Statement on Legislative Proposals that would Harm Innovation and Jobs

On January 16, 2019, Eric Dean, General President of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers and Chairman of PILMA issued the following statement on legislative proposals that would negatively impact innovation and jobs.

View the statement in PDF. 

The biopharmaceutical industry supports more than 4.7 million American jobs.  Significant investment in capital expansion and maintenance by the industry creates union construction jobs, ensuring continued work that keeps our members in the middle class.  As Chairman of the Pharmaceutical Industry Labor-Management Association (PILMA), a coalition of unions in the building construction trades and companies in the biopharmaceutical industry committed to advancing medical innovation to cure disease and creating high-quality union construction jobs, I urge your commitment to the bedrock American principles that allow the biopharmaceutical sector to flourish and contribute to U.S. economic growth.  

As the 116th Congress opens, there is no lack of poorly conceived ideas being introduced that would have a devastating impact on this vital U.S. sector.  PILMA’s longstanding position on price controls in the form of importation and reference pricing states that these policies would upend the discovery of new medicines, halt the expansion of new research and manufacturing facilities and immediately harm union construction jobs.

In addition, the price control mechanisms being proposed would put America’s access to safe medicines at risk.  As PILMA detailed in its resolution on importation, it is well documented that unless medicines are produced in the closed prescription drug distribution system overseen by the FDA, there is no way to determine where imported drugs originate. This opens the U.S. market to counterfeit drugs from countries with little to no regulation with the real possibility of harm and fatalities for patients. 

Reference pricing is another proposal that would have far-reaching, detrimental consequences. America’s competitive market-based economy enables new medicines to be available to patients in the U.S. often before they are offered in other countries. If implemented, tying the price of medicines to those in less developed countries could delay medicine availability to U.S. patients and present a significant barrier to access. 

PILMA has long held positions supporting intellectual property rights and patent protections, policies that position the United States as a world leader in R&D intensive industries.  These Constitutionally protected policies provide incentive and predictability for industries to invest with the assurance of the opportunity to recoup investment, a key component when planning capital construction projects that put our members to work.

The biopharmaceutical sector is a vital U.S. industry that makes significant contributions to the growth of the economy and the health of all Americans and those around the world. It is imperative that policies are implemented to boost up this sector rather than try to dismantle it for short-term political gain. I urge you to review the implications of the policies being debated and consider the negative impact they would have on innovation and union construction jobs.

 

 

 

New PILMA Study Shows Partnership Drives $14B in Construction

December 13, 2018

Today, PILMA in partnership with the Institute for Construction Economic Research (ICERES) released a first of its kind report quantifying the economic impact of the partnership between the building trades unions and the biopharmaceutical industry. Main takeaways include:

  • The partnership between skilled craft unions and biopharmaceutical companies helped drive $14 billion in construction investment on 249 major projects active at any time between 2012 and 2017 in 11 states.
  • Skilled craft union workers earned a minimum of $454 million on biopharmaceutical construction projects over the study time period.
  • 14 different trades contributed more than half a million labor hours to the projects with considerable investment in apprenticeship programs.

View the full study at pilma.org/unionjobs.

View the press release.

 

PILMA Statement on HHS Speech and its Impact on Innovation and Union Jobs

On October 25, 2018, PILMA released the following statement in response to President Trump’s speech at the Department of Health and Human Services.

The statement follows a previously adopted PILMA Resolution on Price Controls.

View the statement in PDF. 

The labor unions and biopharmaceutical companies of the Pharmaceutical Industry Labor-Management Association (PILMA) have a longstanding position against price controls and barriers to access that would stifle innovation, thwart the discovery of new medicines and harm union construction jobs.

In light of President Trump’s speech today at the Department of Health and Human Services, we reiterate our long-held view that arbitrarily linking the price of medicines to those in other countries disrupts America’s competitive market-based economy and would have a devastating impact on medical innovation. Forcing foreign government price controls on American health care would negatively impact biopharmaceutical investment in research and development, create barriers to access to life-saving medicines, immediately reduce capital construction and hurt union construction jobs upon which the men and women of America’s Building Trades rely.

Last year, PILMA adopted the following resolution concerning price controls on biopharmaceuticals, warning of the consequences of the exact policies the administration has announced today. These are harmful policies that would do irreparable damage to an industry that is responsible for the largest share of business R&D in the U.S. and supports more than 4.7 million American jobs.

WHEREAS, innovation within the U.S. biopharmaceutical sector leads to new discoveries that save lives and contribute to U.S. economic growth and result in the U.S. being the global leader in biopharma research and development; and

WHEREAS, this competitive edge has positioned the U.S. pharmaceutical sector as one of the few manufacturing industries that still maintains a significant employment footprint domestically, supporting more than 4.4 million American jobs and is responsible for a larger share of business R&D than any other industry in the U.S. economy; and

WHEREAS, PILMA is committed to the dual goals of fostering innovation in life-saving cures and securing high-quality union construction jobs; and

WHEREAS, on average a new medicine that goes to market costs $2.6 billion and takes 10 years to go through the entire R&D process; and

WHEREAS, price controls in the form of indexing drug prices to those in other countries, instituting a commission to arbitrarily decide what prices are deemed acceptable or tying market wide drug prices to the Veterans Administration, disrupts America’s competitive market-based economy and would have a devastating impact on medical innovation; and

WHEREAS, America relies on its competitive marketplace to control costs while encouraging development of new treatments and as a result, U.S. patients’ have access to new therapies before they are offered in other countries; and

WHEREAS, price controls will result in less investment in R&D and could reduce employment in the construction industry through decreased capital construction projects; and

WHEREAS, PILMA has steadfastly opposed policies that reduce investment incentives and weaken protections of intellectual property rights, because without these Constitutional safeguards in place the innovation-investment process dries up and quickly, jobs are lost; therefore

BE IT RESOLVED, that the trade union and company trustees of the Pharmaceutical Industry Labor-Management Association (PILMA) recognize that price controls will upend America’s position at the forefront of medical innovation, cease current and future research and development and eliminate American jobs the industry supports; and

BE IT FURTHER RESOLVED that price controls violate the very fabric of the U.S. Constitution by disregarding the patent and trademark clause put in place to protect innovation and create incentive to take economic risks for the health all Americans and the world; and

BE IT FURTHER RESOLVED that the trade union and company trustees of PILMA will advocate and urge legislators to oppose legislation that arbitrarily caps drug costs.

PILMA Warns that Changes to the Medicare Part D “Donut Hole” would have Unintended Consequences

On August 17, 2018, PILMA Chairman and Ironworkers General President Eric Dean sent the following letter to House and Senate leadership advocating for the repeal of a provision in the Bipartisan Budget Act that would, “threaten the viability of the [biopharmaceutical] industry to invest in new treatments and cures and decimate the competitive nature that is the foundation of the Medicare Part D program, without providing significant savings to the government or beneficiaries.”

This letter follows a February PILMA statement detailing the unintended consequences of this provision and urging opposition.

View the letter to Congressman Paul Ryan, Congresswoman Nancy Pelosi, Senator Mitch McConnell and Senator Charles Schumer.

 

For 15 years, labor unions in North America’s Building and Construction trades and companies in the biopharmaceutical industry have enjoyed a robust partnership, formalized as the Pharmaceutical Industry Labor-Management Association (PILMA).  As Chairman of the organization and General President of Iron Workers International, I have seen firsthand how government policies impact the industry’s investment in R&D, manufacturing and the subsequent infrastructure projects that provide construction jobs for our members. 

The biopharmaceutical industry is a vital sector in the United States, supporting over 4.7 million jobs and remains an important economic driver for the health of our nation. The building trades enjoy a strong relationship with the industry, which requires highly skilled workers to build research and manufacturing facilities to exacting standards. Not only do these companies employ our members to build new facilities, but to continually retrofit and upgrade existing infrastructure, providing a stream of steady work in their drive to find new discoveries of life saving medicines. 

Recently, Congress passed the Bipartisan Budget Act with a provision that would threaten the viability of the industry to invest in new treatments and cures and decimate the competitive nature that is the foundation of the Medicare Part D program, without providing significant savings to the government or beneficiaries.  

The provision changes the payment structure in the “donut hole” portion of Medicare Part D. After a drug insurance plan spends a certain amount on a beneficiary, the beneficiary moves into the donut hole phase of coverage where the cost sharing structure shifts between the insurance plan, the government, manufacturers and the beneficiary. Under the new provision, a large portion of the cost burden would shift from the insurers to patients and manufacturers. This would reduce insurers liability to just 5% of beneficiary costs in the donut hole, decimating incentives for insurers to keep costs low. Even more egregious is that beneficiaries will now pay five times more than their insurance plans during this phase of coverage. 

In no case should the beneficiary pay more than their insurer for the cost of medicines and treatment. That is what premiums are for. PILMA stated its opposition to this new provision back in February, however, recent fiscal analysis of this change further strengthens the case to roll back the provision.   

America’s skilled craft unions and PILMA have a long history of supporting policies that reduce barriers to access for patients, which includes lowering out-of-pocket costs. However, this plan does not result in significant savings for beneficiaries. The cost to manufacturers threatens the industry’s international footprint in the U.S. as well as the jobs that come with it. The men and women of the building trades depend on large infrastructure projects like those the biopharmaceutical industry provides to continue apprenticeship training programs, fund our health and welfare plans and keep our members earning a steady wage to remain in the middle class. 

The biopharmaceutical industry makes significant contributions to new scientific advancements and is pursuing not just innovative treatments, but also cures. It is essential that the government protect this industry that is vital to the fabric of the U.S. economy rather than raid its R&D funding to pad the pockets of insurers. 

Congress now has the opportunity to make changes to Medicare Part D that would make medicines more accessible and affordable for patients, improving health outcomes. Inaction to address the 2020 out-of-pocket cliff and the negative consequences from this provision in the Bipartisan Budget Act is not an option. We encourage Congress to repeal this provision and work with stakeholders to develop a policy that works for citizens. 

LillyPad: What Does IP Have to Do With Union Construction Jobs?

The following post appeared on LillyPad

By: Eric Dean, General President of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers and Chairman of the Pharmaceutical Industry Labor-Management Association (PILMA).

At the intersection between the biopharmaceutical industry and North America’s Building Trades Unions is thePharmaceutical Industry Labor-Management Association, better known as PILMA. As Chairman of the organization, I have taken on its mission of creating high-quality union construction jobs and fostering innovation in the biopharmaceutical sector.

The biopharmaceutical industry is at the forefront of innovation, discovering new treatments and cures that only a few years ago seemed impossible. For example, advances in cancer treatments are now personalized to each individual’s unique DNA; Hepatitis C – once a chronic condition – can now be cured through medication.

Of course, there is a significant cost that comes along with these advancements. The average drug costs $1.2 billion to develop and bring to market.  In order to devote the time and money to research, develop and manufacture breakthrough medicines, there must be adequate safeguards in place to ensure that costs can be recouped. The U.S. maintains the highest standards of intellectual property protections in the world with 12 years of data exclusivity for medicines. As a result, medicines are researched and manufactured here in the U.S. creating thousands of jobs for our members.

America’s biopharmaceutical companies rely on North America’s Building Trades Unions to build and retrofit facilities because they know that they will be built to exacting standards and right the first time. Companies cannot afford for delays or mistakes to be made when people’s lives are on the line. The building trades invest over $1 billion each year in training their members to be the best trained and highest skilled workers in the world; oftentimes learning techniques specific to the needs of the biopharmaceutical industry.

To ensure these high-quality jobs remain here in the U.S., it is imperative that intellectual property protections are protected and maintained. That’s why PILMA has adopted a resolution and reaffirmed its position last month on the importance of IP protections to future union construction jobs.

Innovation within the biopharmaceutical sector leads to new discoveries that save lives and help this important U.S. industry remain competitive globally. It is essential for the health of all Americans and those around the world and the U.S. jobs the industry provides that this sector is protected with predictable and strong IP protections.

Statement by SMART General President Joseph Sellers On President Trump’s Drug Pricing Speech

Download the statement here.

WASHINGTON (May 23, 2018) – Joseph Sellers, General President of SMART, the International Association of Sheet Metal, Air, Rail and Transportation Workers, released the following statement in response to President Trump’s speech on drug prices:

“We commend the Trump Administration for the attention on this critical issue, particularly the much-needed focus on the cost-effective delivery of prescription drugs from pharmacy benefit managers (PBMs). We simply cannot have a system where PBM’s through insurance companies unfairly put profits over patients and workers. By using the State of New Jersey as an example, they have netted an unprecedented $1.6 billion, or 18%, reduction of its prescription drug spending over the next three years through greater competition among PBMs without restricting access to needed medicines.

“The Administration’s efforts underscore the critical need for solutions that bring down costs without negatively impacting medical innovation and jobs that America’s life sciences sector help sustain. More than 3.2 million jobs are supported by the biopharmaceutical industry, including the union constructio n jobs provided by skilled craft workers necessary to build and maintain the laboratories and R&D facilities that are achieving the next wave of innovation for patients. Our Sheet Metal, Air, Rail and Transportation Workers Union and fellow building trade unions spend over $1 billion annually to train Apprentices and Journeypersons to meet the exacting demands required by this industry to develop cures. The breakthrough treatments that we’re seeing forever change medicine are made possible by the contributions of skilled workers that support clinical trials, training programs and research. This must be delivered to patients as an affordable treatment while we reward and incentivize innovation.

“As a union , we will continue to call for all stakeholders in health care – including PBMs – to make medicines more affordable. Where necessary, we will continue to seek legal recourse and join other trade unions to protect against schemes that overcharge our members, patients and our health funds.

We stand ready to help drive this agenda, in partnership with policymakers on both sides of the aisle. The president’s remarks reinforce the importance of working across the health care delivery system , the moderation of profits and administrative fees to reduce overall health care costs. Creating a competitive marketplace for those that distribute, while maintaining the skilled men and women who will play a unique role in delivering the next wave of innovative treatments for patients who need them.

Delaware State News: The culprits behind high prescription drug prices

James Maravelias, President of the Delaware AFL-CIO and Co-Chair of We Work for Health Delaware, authored the following op-ed for Delaware News Journal.

May 14, 2018

View article on the Delaware News Journal website.

Out-of-pocket health care costs rose by 3.9 percent in 2016, according to a new report by Health Affairs. That was the fastest rate of growth in nine years. And in 2016, national health care costs hit a new record — consuming about 18 percent of the GDP.

Everyday consumers are struggling to keep up. Two in three Americans believe that lowering out-of-pocket costs should be a “top priority” for lawmakers. Almost as many believe that lowering the price of prescription drugs should be a “top priority.”

These concerns are valid. The out-of-pocket costs of prescription drugs, especially, are beginning to take a toll on patients — and there’s much that lawmakers can do. They should begin by looking at the behind-the-scenes role played by little-known middlemen called Pharmacy Benefit Managers, or PBMs.

At the most basic level, PBMs negotiate with drug makers over the price insurers will pay to have a drug included in their formulary. Because PBMs process most prescriptions, they can demand steep discounts or rebates from manufacturers who might otherwise be shut out from access to insurer formularies.

In theory, that’s supposed to lower prices for patients. And so it would, if the PBMs passed those reduced costs from drug makers on to patients.

Let’s say a patient in Wilmington, Delaware has a prescription filled for a brand-name cholesterol medication. The PBM has negotiated a price with the manufacturer, but that price also includes a rebate paid to the insurer weeks if not months after our patient picks up the medication at the drugstore.

For example, the list price on a medication is $100. The pharmacy first collects the patient’s co-pay of, say, $40 and then collects $60 from the insurance company.

Here’s where the funny business comes in: The PBM retains part of the rebate for itself and then gives part of it to the insurer. It doesn’t give any to the patient, who still pays the $40 copay, regardless of the rebate. In the end, the patient ends up paying more than the insurer did. And the PBM makes a profit.

If this scenario sounds like the middleman is making a killing, then you understand perfectly.

Fortunately, regulators in Washington have started to understand this system’s potential for abuse. The whole idea behind discounted prices for medications is to make them cheaper for patients — not to allow middlemen to escape with a hefty percentage of the discount.

The Department of Health and Human Services recently proposed a new rule that requests information on how HHS could share more rebates with seniors enrolled in Medicare Part D, the prescription drug benefit program. This new information could go a long way toward helping seniors in the Part D program lower their out-of-pocket costs.

Lawmakers in statehouses across the country are also considering measures to ensure patients benefit from the fierce negotiations.

This is important work. Managing one’s health is tough enough. Patients need relief at the pharmacy counter. By passing along discounts and rebates on drugs, PBMs can provide this relief.

Press Release: Building Trades Unions Weigh in on Drug Prices

Building Trade Unions Weigh in on Drug Prices

Iron Workers General President Releases Statement Following President Trump’s Speech on Drug Prices  

View the statement in PDF. 

Eric Dean, General President of the International Association of Bridge, Structural, Ornamental and Reinforcing Ironworkers, released the following statement in response to President Trump’s speech on drug prices:

The building trades unions enjoy a long and productive relationship with the biopharmaceutical industry that creates jobs for our members. In addition to relying on skilled union craft workers to build and maintain research facilities in communities across the U.S., this sector is one of the few manufacturing industries that still maintains a significant employment footprint domestically, providing jobs for more than 4.4 million Americans.  Our members also benefit from the innovative treatments and cures that the industry researches and produces in the United States.

I commend President Trump for bringing needed attention to the high price of healthcare and share his concerns regarding access to medicines. While breakthroughs in medicines have resulted in fewer doctor’s visits and hospitalizations for many Americans, many patients have difficulty in affording medicines. It is an issue that needs to be addressed for the long-term health of the country.

There are many middlemen in the complex structure of delivering medicines from manufacturer to patient. I share concern with union leaders responsible for our members’ health and welfare plans about the role middlemen – from insurers to pharmacy benefits managers (PBM’s) –  play in the healthcare system. An effective solution needs to involve taking a broad view and address all stakeholders in the healthcare system and their contribution to cost.  Look no further than New Jersey, where a successful model has been put in place by State Senate President and fellow ironworker Steve Sweeney. By creating a competitive marketplace for PBMs, the state has effectively used its own buying power to keep costs down, preventing runaway profits of middlemen. By creating greater competition among PBM’s, New Jersey has saved $1.6 billion – an 18% reduction – in prescription drug spending over the next three years.

This is a great example of looking at how all entities in the supply chain affect the ultimate out-of-pocket cost for patients and addressing it in a way that does not harm the ecosystem that is a bedrock of American innovation. Any solution must look across the healthcare system and address the excessive profits of middlemen at the expense of patients. Innovative industries like the biopharmaceutical industry create millions of jobs including for our members. When finding solutions, I urge policymakers to take a broad view of all contributors to the rising costs of healthcare in this country.

###

About Iron Workers:  The Iron Workers (IW) represents 130,000 ironworkers in North America who work in construction on bridges; structural steel; ornamental, architectural, and miscellaneous metals; rebar; and in shops.

Sara Schuttloffel
Iron Workers
2023834885
SSchuttloffel@impact-net.org

PILMA Chairman Reaffirms Position on Intellectual Property Protections

On April 25, 2018, Ironworkers General President and PILMA Chairman Eric Dean sent the following letter to the Chairman and Ranking Member of the Senate Finance and House Ways and Means Committees. The letter reaffirms PILMA’s commitment to strong intellectual property protections both domestically and in agreements with other countries.

View the letter here.

“The Pharmaceutical Industry Labor-Management Association (PILMA), a coalition labor organizations and companies in the biopharmaceutical industry, is committed to the dual goals of fostering innovation of life-saving medicines and creating high-quality union construction jobs.

The biopharmaceutical sector support more than 4.7 million American jobs, including members of the building and construction trades unions. It is one of the few manufacturing industries that still maintains a significant employment footprint domestically. In order to devote time and resources to the long-term development of new treatments and cures through research and development, it is essential that strong protections of intellectual property are in place and enforced.

PILMA has a longstanding position supporting intellectual property protections in the U.S. and throughout the world.  As PILMA has previously stated, we support intellectual property rights to be part of international rules and regulations that drive U.S. economic growth, job opportunities, and exports.

As your Committees and the Administration looks to use U.S. and international laws to enforce bilateral and multilateral agreements, standards, and regulations with countries around the world, we expect high policy and legal standards to be set and enforced. This includes 12 years of data protection for biologics, which is already U.S. law, to be a standard the Administration seeks to apply and enforce with other countries.

Innovation within the biopharmaceutical sector leads to new discoveries that save lives and help this important US industry remain competitive globally. It is essential for the health of all Americans and those around the world and the U.S. jobs the industry provides that this sector is protected with predictable and strong IP protections.”

 

 

 

Center Maryland: Promote Policies that Nurture Innovation and Jobs to Produce Cures

Eric Dean, general president of the Iron Workers and Chairman of PILMA authored the following op-ed for Center Maryland. 

Click here to view on Center Maryland.

The Pharmaceutical Industry Labor-Management Association (PILMA), a coalition of companies in the biopharmaceutical industry and building construction trades unions, is committed to dual goals of fostering innovation of life-saving cures and securing high-quality union construction jobs.

As Chairman of PILMA, I’m invested in the issues that are of importance to our biopharmaceutical industry partners and customers, to the extent that they are of importance and have a connection to the livelihoods of our members and their families. As our industry partners remain healthy, their investment in research and manufacturing facilities – to a very large extent built by our members – grows as well.

Last month, the Washington Post wrote about proposed legislation in the Maryland legislature that would “create a commission to decide the maximum amount that health plans, pharmacies and state programs could shell out for the most expensive brand-name and patented medications.”

This so-called transparency legislation is being proposed in a number of states throughout the country, but the Maryland bill is the most egregious of any put in print. This measure essentially caps growth of businesses in the state. This creates a toxic environment for the biopharmaceutical industry that is not only anti-business but anti-jobs. If profits are capped, there is less incentive to discover new medicines, investment in new facilities dries up and jobs are lost.

The biopharmaceutical industry is a major economic driver in Maryland. In 2015, it provided over 24,000 direct jobs in the state and another 87,000 indirect jobs. Our partners in the biopharmaceutical industry depend on union labor to build state-of-the-art research and manufacturing facilities to rigorous standards. If this bill is passed, the effects on the building and construction trade unions would be significant both immediately and in the long term.

Here’s why – the building trades unions invest over $1 billion each year in apprenticeship training programs where members learn cutting-edge techniques to be the safest, most productive and highest skilled workers in the world. Behind every apprenticeship there must be a job supporting it. Apprentices earn while they learn, graduate debt free and all this is done using no taxpayer money. Without the promise of jobs provided by industries like the pharmaceutical industry, the program would not exist.

Aside from the loss of jobs, this legislation has other unintended consequences. The Federal Trade Commission has determined that the disclosure of this type of sensitive information could disrupt competitive forces within the industry, leading to price increases and medicine shortages. To make matters worse, there is nothing in the legislation that would prevent a company from being required to reveal confidential contractor bids, providing a roadmap for out of state, non-union, low cost contractors to underbid skilled union craft contractors.

Several good ideas have been proposed to control cost and increase choice and access to medicines – but this transparency bill is not one of them. In New Jersey, state Senator Steve Sweeney (an International Vice President of the Ironworkers Union) saved the state an estimated $1.5 billion by creating a competitive bidding process for Pharmacy Benefit Managers (PBMs) to win the state’s healthcare business. In Maryland, another proposed policy is eliminating the gag rule, which prohibits pharmacists from telling patients when a medicine would be cheaper by paying out-of-pocket and not going through insurance. This is an unacceptable, opaque policy that allows PBMs to pad their pockets when patients overpay at the pharmacy counter. There are systematic problems with third parties in the healthcare system that through reform, can result in direct savings for patients.

We all want laws that help protect our access to good and affordable healthcare, but this so-called transparency legislation is a failed approach at legislating. While it makes for good politics, it is bad policy. Of the three states which have passed similar legislation, two have been mired in litigation, costing state and taxpayer dollars.

It takes an average of 10 years and $2.6 billion to bring a drug to market. Without safeguards in place to protect this type of confidential information that promotes competition, the industry would lose critical incentives to discover life-saving cures and treatments. As a result, capital investment in research and manufacturing facilities that provide millions of jobs for working families could become at risk.