Article Summary –
Senate Democrats introduced a bill on March 27 aimed at protecting Americans with private health insurance from significant medication price hikes, similar to the Inflation Reduction Act of 2022, which requires pharmaceutical companies to refund money to the federal government if they raise prices for Medicare-covered drugs beyond the inflation rate. Sponsored by Nevada Democratic Sen. Catherine Cortez Masto and Michigan Democratic Sen. Elissa Slotkin, the Lower Drug Costs for Families Act proposes applying this principle to private insurance, penalizing manufacturers for undue price increases and using the fines to reduce the federal budget deficit. The bill, endorsed by organizations like the AFL-CIO and American College of Physicians, has been referred to the Senate Finance Committee but faces challenges in advancing in the Republican-led Senate.
Senate Democrats introduced new legislation on March 27 aimed at shielding Americans with private health insurance from significant drug price hikes.
The Inflation Reduction Act of 2022, signed by President Joe Biden, included a provision that mandated pharmaceutical companies to reimburse the federal government if drug prices under Medicare Part B and Part D rose above the inflation rate. A 2017 report from the Department of Health and Human Services revealed that 50 of the 64 most expensive drugs in 2015 increased faster than inflation, costing the government $1.4 billion in excess.
The Lower Drug Costs for Families Act would extend similar protections to those with private insurance, penalizing drugmakers who raise prices excessively. Funds from these fines would help reduce the federal deficit.
Sponsored by Nevada Democratic Sen. Catherine Cortez Masto, with Michigan Democratic Sen. Elissa Slotkin as an original cosponsor, the bill faces challenges in the Republican-majority Senate.
In a press release, Slotkin emphasized, “Big Pharma has price gouged Americans for too long. Everyone should access affordable health care. This bill is a step towards holding Big Pharma accountable.”
The proposal has gained support from the AFL-CIO, American Federation of Teachers, Patients for Affordable Drugs Now, United Mine Workers of America, and the American College of Physicians.
AFL-CIO director of government affairs Jody Calemine stated, “The Lower Drug Costs for Families Act extends Medicare drug price protections to all with private insurance. Research indicates billions can be saved on premiums and copayments. We commend Senator Cortez Masto for this crucial legislation.”
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