Oversight committee launches major drug pricing investigation

House Oversight and Reform Committee Chairman Elijah Cummings (D-MD) sent letters to 12 different drug companies seeking detailed information and documents about how the companies price their medications. The request is part of a new sweeping investigation into the industry's pricing practices.

House Oversight and Reform Committee Chairman Elijah Cummings (D-MD) sent letters to 12 different drug companies seeking detailed information and documents about how the companies price their medications. The request is part of a new sweeping investigation into the industry's pricing practices. "For years, drug companies have been aggressively increasing prices on existing drugs and setting higher launch prices for new drugs while recording windfall profits," Cummings said in a statement. "The goals of this investigation are to determine why drug companies are increasing prices so dramatically, how drug companies are using the proceeds, and what steps can be taken to reduce prescription drug prices," he said. Cummings noted the committee is seeking detailed information and documents on price increases, investments in research and development, and corporate strategies to preserve market share and pricing power.