Understanding Title VII of the Affordable Care Act
Posted Apr 16th, 2012 by Rex Bowden
Title VII of the Affordable Care Act, Improving Access to Innovative Medical Therapies, was created topromote medical innovation and to promote savings for all patients. It attempts to does this in a numberof ways, one of which is to extend medication discounts to hospitals and communities that provide careto low income patients, including children and underserved communities.
Title VII also creates more opportunity for the development of generic versions of brand name andcostly drugs so that both care providers and patients have greater access to less expensive drugs.Generic drugs have the same effectiveness as their brand name counterparts; they are simply muchless costly. Under Title VII, pharmaceutical companies can compete among each other to create"biosimilars," generic-like biopharmaceuticals. From there, the Food and Drug Administration holds theauthority to approve such drugs for consumer use.
The intent of Title VII is to benefit the consumer by eliminating the anti-competitive behavior by drugcompanies that keep effective and affordable generic drugs off the market and away from patients whoneed them most.