At first glance, the federal government’s price controls on prescription drugs, introduced under the Biden administration’s Inflation Reduction Act (IRA), may seem like a win for patients facing high medication costs. But beneath the surface, this law carries serious, unintended consequences. By stifling innovation and limiting future access to life-saving treatments, it threatens to reduce patient choice, slow medical progress and ultimately leave vulnerable communities with fewer, less effective options for care.
Recognizing this threat, President Trump issued an executive order earlier this month making it clear: All prescription drugs should be treated the same. His directive urges federal health agencies and Congress to work together to fix policies that unfairly push investment away from affordable, widely used medicines and toward costlier, less accessible alternatives.
One of the most damaging of those policies is what many now call the “pill penalty” — a little-known provision buried in the IRA. The pill penalty subjects what are called small-molecule medicines — pills, capsules and tablets that make up more than 90% of all prescriptions — to government price-setting four years sooner than other types of drugs. While that may not sound like a huge difference, it has already led to a 68% drop in small-molecule investment by smaller companies, causing a staggering blow to innovation.
These aren’t just numbers — they represent fewer treatments for conditions like diabetes, high blood pressure, cancer and mental health disorders. These very diseases disproportionately impact minority communities, and I see their effect every day in the more than 80,000 minority-owned businesses and families I represent at the Florida State Hispanic Chamber of Commerce.
The small-molecule medications subject to the pill penalty are often more affordable, easier to distribute and more accessible to patients. But because of policies that would put a halt on their creation, up to 150 of these accessible medicines could cease to be developed altogether.
Thankfully, there’s already a bipartisan solution on the table: the Ensuring Pathways to Innovative Cures (EPIC) Act. Reintroduced in Congress earlier this year, this common-sense bill would allow 13 years before price controls take effect on small-molecule drugs, the same as for some other forms of medication.
This small fix would restore balance, encourage investment and ensure that patients retain their access to groundbreaking, convenient treatments.
At the Florida State Hispanic Chamber of Commerce, we’re committed to advancing economic opportunity and improving quality of life for Florida’s diverse Hispanic communities. Access to affordable, innovative health care is a key part of that mission. When investment in life-saving medicines slows, it’s often minority and underserved communities that feel the impact first.
Supporting the EPIC Act isn’t just about fixing a policy flaw — it’s about ensuring that all patients, regardless of background, continue to benefit from medical breakthroughs that help families to stay healthy and businesses to thrive.
Let’s champion innovation, protect patient access, and keep America at the forefront of life-saving discovery. The stakes are far too high to do anything less.
Julio Fuentes is the founder, president and CEO of the Florida State Hispanic Chamber of Commerce.