Drug pricing plan faces resistance from Democrats, underscoring party dilemma

Democrats have estimated that the drug pricing provision would raise about $ 700 billion, which they need to cover the cost of their $ 3.5 trillion proposal. Without this provision, Democrats would have a significant funding gap, especially since some in the Senate have argued that they want the plan to be fully paid for.

In a statement after the vote, Murphy, who has been part of a group of moderates to continue to voice concerns about the broad economic spending program, said there are “provisions for spending and taxes make me think, so I can’t vote for the bill at this early stage.

Murphy, however, did not indicate how she would vote on the overall package, saying she remains “optimistic” that the end product “will be properly targeted and fiscally responsible”.

While the drug pricing provision may feature in the final version of the bill, the moderates’ retreat on the issue makes it clear how difficult it will be for Democrats to stand united and pass the final legislation. Senate Democrats, who control just 50 seats, will need to be fully aligned to pass the legislation.

White House spokesman Andrew Bates said in a statement Wednesday that “the president agrees with President Pelosi that in order to build an economy that benefits the middle class and working families – not just those at the top – it is essential that we empower Medicare to negotiate directly for lower drug prices. “

In a sign of tensions over what to include in the massive economic package, Vermont Senator Bernie Sanders, an independent who speaks with Democrats, criticized the vote of the trio of Democrats on the Energy Committee and trade, saying in a statement he was “very disappointed.”

“I understand that the pharmaceutical industry owns the Republican Party and that no Republican voted for this bill, but there is no excuse that every Democrat does not support it,” said Sanders, chairman. of the Senate Budget Committee.

This is a measure that requires the Secretary of Health and Human Services to negotiate maximum fair prices of at least 50 and up to 250 expensive drugs that lack competition, including insulin. The price would be available for Medicare beneficiaries and for people enrolled in group health plans. A Congressional Budget Office report said it could save the federal government $ 456 billion over a decade.

The House passed a similar bill, also backed by Pelosi, in 2019 with a vote of 230-192. At the time, the speaker was struggling to gain support from progressives, who complained that the bill was not aggressive enough.

The drug pricing proposal would also force manufacturers who are raising prices faster than inflation to reimburse the excess amount to the federal government, which would benefit Medicare registrants and employer-sponsored plans. And that would add a cap on out-of-pocket expenses for Medicare drug plans for the first time. Recipients would each pay no more than $ 2,000.

Peters and Schrader, saying they would vote against the provision, presented an alternative proposal that they said would further reduce out-of-pocket costs for drugs.

The couple’s proposal aims to reduce drug prices through negotiation, but within a narrower set of parameters. It would allow Medicare to negotiate drugs administered in medical practices that no longer have exclusivity and for which there is no competition in the market. The HHS secretary could negotiate for price concessions of between 25 and 35 percent.