H.R. 3 – The Lower Drug Costs Now Act
H.R. 3 – The Lower Drug Costs Now Act
The U.S. House passed (230-192) legislation aimed at cutting the cost of prescription medicines by allowing the Health and Human Services Dept to negotiate prices for the most expensive drugs.
House Democrats released the outline of a long-awaited drug price proposal, taking a step toward fulfilling one of the party's signature campaign promises: requiring Medicare to negotiate drug prices. The bill would allow commercial insurers to benefit from the Medicare-negotiated price as well, and base Medicare's highest-acceptable price on the lower prices other wealthy countries pay.
The House bill would require the Health and Human Services Department (HHS) to identify the 250 drugs that pose the greatest cost to the health care system and don't have any generic competition. Insulin, a life-saving drug for diabetics, would be subject to negotiation. HHS would be ordered to negotiate prices for as "many drugs as possible" each year, but would have to negotiate for a minimum of 25.
Supporters
There is a bipartisan desire to reduce drug prices. The Trump administration in May 2018 issued a "blueprint" for addressing drug prices, some of which it has attempted to implement through administrative actions. President Donald Trump has also spoken favorably of allowing the federal government to negotiate drug prices directly with drug manufacturers, as is done in other countries.
"American taxpayers support prescription drug innovation through government grants and R&D tax credits to drug companies, so Americans shouldn't have to pay many times more what people in other countries pay. Something needs to be done, and Democrats are determined to get the job done. We promised we would do it, and we're going to do it. There is plenty of room to secure fair prices and protect innovation. That's why today we are unveiling H.R. 3, [legislation] that will help lower prescription drug prices and hold drug companies accountable." (Steny Hoyer D-MD)
Opponents
Republicans oppose the bill, saying it amounts to government price control and that the long-term result will be the loss of new drugs because drug companies will no longer have the resources to invest in research and development of new drugs.
"While I'm confident Congress can work together to lower out-of-pocket drug costs for seniors and modernize the popular Medicare prescription drug program, this so-called government negotiation idea is more accurately a 'dictate or destroy' price control power that will halt valuable research into new life-saving medicines and give foreign countries dangerous influence over America’s health care system." (Kevin Brady R-TX)
