How the Affordable Care Act Affects the Pharmaceutical Industry

The US Supreme Court upheld the majority of the Patient Protection and Affordable Care Act (ACA) by a 5-4 vote recently, stirring up controversy and healthcare debate across the nation. The ruling will affect thousands of Americans and extend health care coverage to people who previously had no insurance. This will also have a large impact on the pharmaceutical industry, because millions of Americans will have access to prescription medication who did not in the past.

At the moment, about 50 million Americans have no health coverage. This is 16.3 percent of the population. By 2014, these people will have health insurance and affordable access to pharmaceutical medication. This may mean more customers for large pharmaceutical companies, but no one is sure how this will affect the bottom line for manufacturers in the years to come.

The decision from the Supreme Court also will allow the manufacturers to move forward on plans to develop cheaper generic versions of biologic drugs, known as “biosimilars.”

“Specifically, we will advocate for the implementation approaches that ensure patient safety, expand patient access and competition, and provide necessary and fair incentives that will help spur continued biomedical breakthroughs,” said a statement from the Biotechnology Industry Organization (BIO).

It is great that companies will continue to develop cheaper and more effective medication, but it may open the door for more people to be harmed by defective drugs. If you or a loved one are injured by medication, contact an attorney immediately.

Bonnici Law Group, APC—San Diego personal injury attorney.