U.S. House Speaker Nancy Pelosi released proposed legislation on Thursday that w...
WASHINGTON - U.S. House Speaker Nancy Pelosi released proposed legislation on Thursday that would allow the federal government to negotiate the prices of hundreds of prescription drugs for Medicare healthcare beneficiaries as well as other consumers.
Democrats promised to curb prescription drug prices during last year’s congressional election campaign, when they won the majority in the House of Representatives. U.S. President Donald Trump has also promised to lower prices but has been struggling to deliver on that before the November 2020 election.
In the first year alone, drugs representing more than half of all Medicare “Part D” drug spending would be subject to the negotiation process, including insulin, it said. The Speaker’s bill would also impose penalties on pharmaceutical companies that refuse to negotiate or do not reach agreement. They would have to pay a “non-compliance fee starting at 65 percent of the gross sales of the drug in question,” the summary said. This would increase by 10% every quarter up to a maximum of 95%.
The proposal caps annual out-of-pocket spending on prescription drugs at $2,000 for Medicare Part D beneficiaries, the summary said.
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