Article Summary
The Biden administration and Senate Democrats dropped plans to set drug price caps based on amounts paid in other high-income countries during talks years ago to push through the law that empowered Medicare to negotiate down the cost of prescription medications. This kind of approach to price controls has roots in a bill passed by House Democrats in 2019, aiming to tie the maximum price to an average based on prices paid in Australia, Canada, France, Germany, Japan, and the United Kingdom. However, the bill did not make it through the Senate at the time, and the idea ran into headwinds years later as Biden aides and lawmakers tried to incorporate the measure into the Inflation Reduction Act.
What This Means for You
- Understanding the history of drug price negotiations between the government and pharmaceutical companies, and how it affects the Medicare program.
- Recognizing the impact of foreign countries’ pricing on the U.S. prescription drug market and the continuous efforts to make a difference.
- Identifying how different political parties and their approach to drug pricing negotiations can affect your access to affordable medications.
- Stay updated on the evolving drug pricing policies and their potential effects on your healthcare costs.
Original Post
Senate Democrats and the Biden administration dropped plans to set drug price caps based on the amount paid in other high-income countries, during talks years ago to push through the law that empowered Medicare to negotiate down the cost of prescription medications.
A version of the idea was revived by President Trump in the executive order signed Monday, which called on the Department of Health and Human Services next month to draw up regulations to impose price restrictions tied to lower amounts paid in other developed nations, if drugmakers did not voluntarily reduce what they were charging in the U.S.
Key Terms
- Drug price caps
- Prescription medications
- Medicare negotiations
- Foreign countries’ pricing
- Inflation Reduction Act
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