House Speaker Nancy Pelosi criticized the plan, warning the new rules could force insurers to raise premiums and the total out-of-pocket cost for Medicare beneficiaries.
Democrats have vowed to lower prescription drug costs as well but have focused on the pharmaceutical industry, which sells their drugs at higher prices in the U.S. than abroad. Spending on prescription drugs in the U.S. increased to $333.4 billion in 2017, according to the latest data from the Centers for Medicare and Medicaid Services.
Earlier this month, House Oversight Committee Chairman Elijah Cummings, D-Md., said he sent letters to 12 drugmakers seeking detailed information and documents about the companies’ pricing practices. House Democrats also sent letters to Eli Lilly, Novo Nordisk and Sanofi on Wednesday requesting information on insulin prices and the obstacles to providing more affordable medication.
“For years, drug companies have been aggressively increasing prices on existing drugs and setting higher launch prices for new drugs while recording windfall profits,” Cummings said in a statement. The committee’s goal is to “determine why drug companies are increasing prices so dramatically, how drug companies are using the proceeds, and what steps can be taken to reduce prescription drug prices.”
The proposal, if adopted, would take a while before consumers see a difference. The legislation would have to be debated and passed by both houses of Congress, and federal regulations implementing the rules would likely take months to write.
The proposed rules would apply only to Medicare and Medicaid plans. But senior administration officials say the new rules could ultimately influence the way private sector drug plans are negotiated.
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