Who Pays the Price? Pharmaceutical Lobbying and Drug Price Negotiation Outcomes

Presenter: Bailey Lapolla

Faculty Sponsor: Kevin L. Young

School: UMass Amherst

Research Area: Public Health and Epidemiology

Session: Poster Session 1, 10:30 AM - 11:15 AM, Auditorium, A69

ABSTRACT

Pharmaceutical drug pricing in the United States remains a central policy and ethical concern, particularly in the context of extensive industry lobbying around federal regulation. This thesis examines how pharmaceutical lobbying related to U.S. drug pricing regulation is associated with subsequent changes in drug prices and patient access to medications. This study focuses on the Inflation Reduction Act (IRA), specifically the introduction of Medicare drug price negotiation authority, which represents a significant shift in federal involvement in pharmaceutical pricing. Using publicly available lobbying expenditure data, pharmaceutical companies are categorized by high versus low lobbying activity related to drug pricing. Outcomes are compared before and after the implementation of Medicare price negotiation provisions under the IRA. The dependent variables include changes in drug list prices as well as indicators of patient access which has been defined as Medicare eligibility, participation in patient assurance programs, and coverage expansions or restrictions. The percentage changes in pharmaceutical company revenue to assess whether lobbying activity is associated with financial losses or gains following negotiated pricing reforms. In addition to evaluating policy outcomes, this research considers the ethical implications of pharmaceutical lobbying by examining who benefits from negotiated pricing reforms and whether patients are protected or disadvantaged as a result. Linking political influence to post-IRA pricing behavior, patient access, and revenue outcomes, this thesis contributes to broader discussion of equity, accountability, and public trust in the U.S. healthcare system.