Schumer announces deal to lower prescription drug prices

Washington: Democratic lawmakers have reached a deal on legislation to lower prescription drug prices to be included in President Biden‘s social spending package, Senate Majority Leader Charles Schumer announced Tuesday.

The agreement is less far-reaching than earlier Democratic proposals, but it still represents progress on an issue the party has campaigned on for years.

The agreement would allow Medicare to negotiate drug prices in limited instances, prevent drug companies from raising prices faster than inflation and cap out-of-pocket costs for seniors on Medicare at $2,000 per year.

Democrats scaled back their earlier sweeping measure because of concerns from a handful of moderates that it would have harmed innovation from drug companies to develop new treatments. Sen. Kyrsten Sinema as well as Reps. Scott Peters and Kurt Schrader were among those moderates and helped lead negotiations with leadership over the compromise measure.

“It’s not everything we all wanted. Many of us would have wanted to go much further, but it’s a big step in helping the American people deal with the price of drugs,” Schumer told reporters on Tuesday.

Sinema said in a statement that she supported the agreement.

One of the key compromises leading to a deal was limiting the scope of Medicare’s ability to negotiate lower drug prices, which has long been a signature Democratic proposal. Lawmakers agreed to limit Medicare’s ability to negotiate to older drugs that no longer have “exclusivity,” meaning the period when they are protected from competition. Earlier versions of Democratic bills would have allowed negotiation for newer drugs too.

A draft measure that circulated to lobbyists in recent days would allow negotiation for 10 drugs starting in 2025 and 30 drugs starting in 2028.

The final deal would extend the limits on drug prices rising faster than inflation to people with private health insurance plans as well, which has been a point of debate at some points in the process.

Image courtesy of thesatimes

Share this post