Democratic Reps. Frank Pallone, Jr. (N.J.), Richard Neal (Mass.) and Bobby Scott (Va.) — ranking members on key House committees — introduced the Lowering Drug Costs for American Families Act.
The bill would extend drug price negotiations to include all Americans with private insurance coverage and allow inflation rebates to apply to this group as well. The lawmakers estimated the latter provision would save $40 billion over the next 10 years.
On top of these actions, the legislation would also increase the number of prescription drugs chosen for negotiation every year from 20 to 50. The bill as it stands would have these provisions go into effect beginning in 2029.
The bill is unlikely to advance in a Republican-held House and the federal government’s existing negotiation power is currently being challenged by the pharmaceutical industry, but it is a strong indication of Democratic priorities should they retake the House.
The trio previously worked alongside Rep. Nancy Pelosi (D-Calif.) in introducing the Elijah E. Cummings Lower Drug Costs Now Act in 2019, which included provisions that later popped up in the IRA.
“Our economy bears the burden of high prescription drug costs. Employer-provided health plans spend billions of dollars every year to cover the cost of drugs,” Scott said in a statement. “The American people have also made it clear that they want Congress to take action.”
The Medicare Drug Price Negotiation Program established by the IRA that the lawmakers seek to build off of will need to survive the current wave of legal challenges it faces from drug company trade groups.
As of last week, there are five lawsuits challenging the federal negotiation process across different jurisdictions, and one plaintiff has already asked the program be blocked from operating for the time being.
The first 10 drugs chosen for negotiation are expected to be announced by the start of September, and drug manufacturers will have until Oct. 1 to send in agreements to the negotiation process.
