PRICENTRIC BRIEF:
- Senator Chuck Schumer (D-NY) has announced that Democrats reached a deal regarding prescription drug pricing that would allow the government to negotiate prices for some drugs
- According to a draft measure circulated by lobbyists and cited by U.S. media outlets, the Democrats’ plan would empower Medicare to negotiate the cost of 30 drugs by 2028, specifically drugs that have been on the market for several years and have surpassed their market exclusivity periods
- Negotiations would begin in 2023 for the “most expensive drugs,” including cancer and rheumatoid arthritis treatments as well as anticoagulants, according to Senator Ron Wyden (D-OR)
THE DETAILS
WASHINGTON, D.C. – Senator Chuck Schumer (D-NY) has announced that Democrats reached a deal regarding prescription drug pricing that would allow the government to negotiate prices for some drugs.
At a press conference, Schumer said, “I’m pleased to announce that an agreement has been reached to lower prescription drug prices for seniors and families in the Build Back Better legislation.”
According to a draft measure circulated by lobbyists and cited by U.S. media outlets, the Democrats’ plan would empower Medicare to negotiate the cost of 30 drugs by 2028, specifically drugs that have been on the market for several years and have surpassed their market exclusivity periods.
Negotiations would begin in 2023 for the “most expensive drugs,” including cancer and rheumatoid arthritis treatments as well as anticoagulants, according to Senator Ron Wyden (D-OR). The majority of drugs would still be protected by patent exclusivity for five years before negotiations can commence, with some biologics being spared for 12 years.
In general, price increases would be limited to the 2021 inflation rate.
The plan also includes a $2,000 annual cap on out-of-pocket expenditures for older Americans with health issues, a $35 cap on insulin expenses and automatic rebates on drugs whose prices rise faster than the inflation rate.
Their prescription drug pricing plan is part of the social spending and climate plan and awaits a green light from the House.
Learn more about Pricentric ONE and our Global Pricing Solutions!
Contact us with your questions and global pricing needs, and an expert will follow up shortly.