The Justice Department is investigating generic drug companies for potential violations of antitrust laws related to sudden spikes in prices for what are usually lower-cost alternatives to brand-name drugs. Some insurers are responding to the price hikes by changing reimbursement coverage so that consumers must pay a larger share of the cost of the generic drugs. Private insurers and individual consumers are not the only ones affected, however, as the prices will also directly affect the budgets of Medicare and Medicaid programs. Congress has also begun looking into the price increases. The Senate Committee on Health, Education, Labor, and Pensions' subcommittee on health and aging has announced a hearing on November 20, 2014, "to get to the bottom of these enormous price increases," according to an October 2, 2014, press release from the subcommittee Chairman Bernie Sanders (I-VT). Senator Sanders and Representative Elijah Cummings (D-MD) jointly sent letters to 14 generic drug manufacturers outlining recent price increases and requesting information about the escalating prices for certain generic drugs manufactured by each of the companies, and then called upon the Obama administration to also take action.
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