Opinion: Georgia's Congressional delegation can lead the way on correcting 'pill penalty'
Opinion: Georgia's Congressional delegation can lead the way on correcting 'pill penalty'
Maria Thacker Goethe President and CEO, Georgia Life Sciences: May 1, 2025
Georgia is home to a thriving life sciences sector, with groundbreaking research and innovation happening across the state. From the laboratories at Emory University to biotech firms in Atlanta and beyond, our state plays a vital role in developing the next generation of medical treatments. But a flaw in federal policy is putting that progress at risk—and unless Congress acts now, patients and businesses alike will pay the price.
The problem is known as the "pill penalty," an unintended consequence of the Inflation Reduction Act (IRA). While the IRA was designed to lower drug costs, it included a provision that discourages investment in small-molecule drugs—the pills and capsules that make up over 90% of prescriptions in the U.S. Unlike biologic drugs, which are administered via injection or infusion and have 13 years before they are subject to Medicare price controls, small-molecule medicines face price controls after just nine years. That four-year difference may seem minor, but in the high-risk world of drug development, it has a major impact.
This disparity is already reshaping the research landscape. A recent analysis by Vital Transformation found that early-stage investment in small-molecule medicines has plummeted by more than 70% since the IRA became law, with companies deprioritizing entire areas of drug development. The result? Fewer innovative treatments for conditions like cancer, heart disease, and mental illness—diseases that affect millions of Georgians.
While the White House issued an Executive Order on April 15 to address the pill penalty, a permanent fix is needed through Congressional action. The Ensuring Pathways to Innovative Cures (EPIC) Act (H.R. 1492) offers a commonsense fix. It levels the playing field by giving small-molecule medicines the same 13-year exemption period as biologics. This change would restore incentives for drug companies to invest in critical pill-based treatments while maintaining the IRA’s broader goals of affordability and access.
Georgia needs a leader in Congress to take up this fight―to ensure patients have access to innovative therapies and to ensure that our bioscience community continues to thrive. Our state’s Congressional delegation is perfect for the job, with a track record of protecting patients’ access to care.
Beyond its impact on patients, the EPIC Act is also critical for Georgia’s economy. According to the Georgia Department of Economic Development, the life sciences industry contributes billions to our state’s economy and supports over 75,000 high-paying jobs. This sector is growing rapidly, but continued investment depends on smart policies that encourage research and development.
The good news is that fixing this problem doesn’t require a massive overhaul—just a simple correction to ensure fairness in drug development timelines. The EPIC Act is a targeted solution that preserves the IRA’s intent while ensuring continued medical breakthroughs. Congressman Buddy Carter has a well-earned reputation as a leader in health policy and a tireless champion for patients. By stepping up on the EPIC Act, he can set the stage for the rest of Georgia’s delegation to follow his lead.
The choice is clear: we can either allow the pill penalty to stifle innovation and limit patient access to new treatments, or we can fix it and keep Georgia at the forefront of medical research. The Georgia delegation has the opportunity to lead on this critical issue, and we urge them to seize it. Georgia’s patients, researchers, and life sciences industry are counting on it.
