Lawmakers Reach Deal on Prescription Drug Prices

Yesterday Senate Democrats reached an agreement on prescription drug prices. Senate Majority Leader Chuck Schumer announced the agreement to lower drug costs and empower Medicare to negotiate prices of certain medications administered in doctors offices or purchased at the pharmacy. Drugs wouldn’t be eligible until they were outside their initial exclusivity period which is 9 years for many and 12 for others.

Medicare would negotiate up to 10 drugs a year beginning in 2023 with lower prices taking effect in 2025 and the number would rise to up to 20 medications beginning in 2028. According to the White House, the deal would also impose a tax penalty if drug companies increase their prices faster than inflation and according to the Kaiser Family Foundation, half of all drugs purchased at pharmacies exceeded that threshold. Medicare part D would also be redesigned so that seniors and adults with disabilities wouldn’t have to pay more than $2,000 for medications purchased at pharmacies. A $35 a month cap on insulin would also been enacted.