Tammy Baldwin Supports Bill to Rein in Big Pharma Price Hikes

Article Summary –

Senate Democrats introduced the Lower Drug Costs for Families Act, which aims to apply the inflation-related drug price protections currently available to Medicare recipients to those with private health insurance, effectively penalizing pharmaceutical companies that raise prices above the inflation rate. This initiative is a follow-up to the Inflation Reduction Act of 2022, which similarly targets drug price inflation for Medicare, and is championed by Nevada Democratic Sen. Catherine Cortez Masto and Wisconsin Democratic Sen. Tammy Baldwin. While the bill has support from various organizations, it faces an uncertain future in the Republican-led Senate.

Senate Democrats introduced a bill to shield Americans with private health insurance from sharp medication price hikes.

The Inflation Reduction Act of 2022, signed by President Joe Biden, mandates pharmaceutical firms reimburse the government if they increase Medicare Part B and Part D drug prices beyond inflation. A 2017 report noted that drug prices had surged faster than inflation, costing the government $1.4 billion in 2015.

The Lower Drug Costs for Families Act proposes similar measures for private insurance users, penalizing unjustified price increases and using fines to lower the federal deficit.

Sponsored by Nevada Sen. Catherine Cortez Masto and cosponsored by Wisconsin Sen. Tammy Baldwin, the bill aims to curb drug price inflation.

“Wisconsin families need relief from rising prescription costs. This legislation will help protect them from excessive drug price hikes,” Baldwin stated in a press release.

The bill, referred to the Senate Finance Committee, faces challenges in the Republican-led Senate.

Endorsed by organizations like the AFL-CIO and the American Federation of Teachers, the proposal aims to extend Medicare’s drug price protections to private insurance holders.

“The act will save billions in premiums and copayments for those with job-based or marketplace plans,” said AFL-CIO director Jody Calemine in a statement from Sen. Elissa Slotkin’s office.