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Oppose Price Caps, Remove Excessive Regulation to Lower Drug Costs

To: Members of Senate Committee on Health, Education, Labor and Pensions
From: National Taxpayers Union
Date: July 22, 2026
Subject: NTU’s views on the July 22 Markup

I. Introduction

On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, we write to express our views on legislation slated for consideration before the Senate Committee on Health, Education, Labor and Pensions on July 22, 2026. While NTU recognizes that the Committee is considering a broader package of legislative proposals, we would like to highlight bills that warrant special attention. NTU applauds the Committee for your continued efforts to advance proposals that protect the interests of taxpayers and uphold free-market principles.

II. Legislation

S. 1414, the Expedited Access to Biosimilars Act - Support

Authored by Sen. Paul (R-KY), this legislation streamlines the Food and Drug Administration’s (FDA) convoluted and obsolete approval process for biosimilar drugs. Under current law, manufacturers are required to undertake costly and lengthy clinical studies even when the evidence already shows that the biosimilar they have developed is as safe and effective as the original product. There is ample evidence that prices decline as more competitors enter the market for a given drug. Public policy should, therefore, focus on removing regulatory barriers to entry that keep manufacturers from bringing their drugs to market. This, in turn, can help lower costs in taxpayer-funded health care programs. S. 1414 represents the kind of good-government reform that actually expands supply in the health care market place. NTU supports this legislation.

S. 4189 - INSULIN Act of 2026 - Oppose

Authored by Sen. Shaheen (D-NH), this legislation would cap monthly insulin costs at $35 for patients covered by private or employer-sponsored health insurance, as well as create a pilot program to provide insulin to uninsured individuals at the same cost. While reducing out-of-pocket expenses is perfectly laudable, government mandates that manipulate prices do not eliminate costs, they merely shift them to other actors in the health care supply chain. By mandating a cost-sharing cap, this legislation could result in insurance companies absorbing higher costs, which would likely be passed onto patients through higher premiums. The American health care marketplace hardly needs more pricing mandates. Instead, we encourage the Committee to focus on solutions that address the underlying drivers of high drug costs. NTU opposes this legislation.

S. 5026, the Childhood Diabetes Reduction Act - Oppose

Authored by Sen. Sanders (I-VT), this legislation mandates new warning labels on certain food products the Department of Health and Human Services (HHS) deems contain unhealthy levels of sugar, sodium, saturated fats, artificial sweeteners, or other “ultra-processed” foods. Additionally, this bill restricts the advertising of these products to children. The goal of combating childhood diabetes is obviously laudable. In fact, taxpayers have a substantial interest in initiatives that can lower the burden of chronic illnesses in federal health care programs. Nevertheless, this legislation fails to address the underlying drivers of chronic disease in children and creates new federal mandates that would raise prices for consumers.

Federal food labelling laws already require extensive disclosure, and the Food and Drug Administration (FDA) regularly updates these requirements to ensure consumers understand what they are buying. Layering on a new federal mandate has the potential to duplicate ongoing efforts and would be a waste of taxpayer funds. Moreover, any new labelling requirements would invariably result in added compliance costs, which would be passed on to consumers.

This legislation could also result in the growth of the federal bureaucracy. There is currently no scientific consensus on what exactly constitutes “ultra-processed” food. The bill directs HHS to come up with a definition, which, in effect, grants federal regulators broad discretion to regulate huge swaths of the American food market. Uncertainty for producers would only compound the impact on prices. On top of all this, the ban on advertising and the label mandate raise legitimate concerns about free speech rights. NTU opposes this legislation.

III. Conclusion

Should you have any questions about the recommendations in this memo, please do not hesitate to reach out to Alexander Ciccone (aciccone@ntu.org).