Larson and Democratic Health Leaders Put Forward Comprehensive Plan to Lower Prescription Drug Prices
Washington, D.C. – Today, House Social Security Subcommittee Ranking Member John B. Larson (CT-01) announced the landmark Lowering Drug Costs for American Families Act to build on Democrats’ success lowering drug prices with the Inflation Reduction Act. This bill would expand Medicare’s power to negotiate lower costs for consumers to private health plans and rein in pharmaceutical price gouging.
“Americans are being squeezed by rising costs at the grocery store, gas pump, and of course, at the pharmacy,” said Larson. “Democrats made historic progress to lower drug costs when we passed the Inflation Reduction Act – finally empowering Medicare to directly negotiate prices and capping out-of-pocket costs. Seniors are receiving the relief they desperately need. Now, it’s time to expand these cost savings to all Americans. I will continue to fight tooth and nail to ensure that in the wealthiest nation in the world, no one has to go without their life-saving medications. The American people need action now. Let’s have a vote!”
The Lowering Drug Costs for American Families Act builds on the drug pricing provisions Democrats passed in the Inflation Reduction Act and closes new loopholes enacted by Congressional Republicans and President Trump that allow pharmaceutical companies to avoid or delay negotiation longer on lifesaving drugs. Specifically, the bill would:
Extend Medicare’s historic drug price negotiation program to all Americans with private coverage.
Increase the annual number of prescription drugs selected for price negotiation from 20 to 50.
Ensure that prescription drug inflation rebates apple to individuals covered by private health plans to stop drug companies from raising prices faster than inflation.
Extend the annual $2,000 out-of-pocket cap on prescription drugs to people with private health insurance.
Limit out-of-pocket costs for insulin at $35 per month for people with private health insurance.
Repeals the Republican handout to Big Pharma that allows drug companies to avoid negotiating prices for years by claiming an orphan drug designation.
Requires the Secretary of Health and Human Services to consider the international price for the drug when negotiating prices.
A section-by-section is available HERE.
Bill text is available HERE.
Ranking Member Larson joined Ways and Means Committee Ranking Member Richard E. Neal (MA-01), Energy and Commerce Committee Ranking Member Frank Pallone (NJ-06), and Education and Workforce Committee Ranking Member Bobby Scott (VA-03) in support of the Lowering Drug Costs for Families Act.
“Democrats have demonstrated that meaningful relief for families is possible, dealing in results instead of press conferences and CEO announcements,” said Neal. “We lowered out-of-pocket costs, enabled Medicare to negotiate drug prices, expanded coverage to historic highs, and saved families an average of $2,400, all without a single Republican vote. As the Trump Administration socks people with higher costs and grifts with TrumpRx, this legislation delivers on building on the Democratic progress and moving us toward a future where every American can afford the prescriptions they need.”
"Democrats gave Medicare the power to negotiate prescription drug prices, but there’s more that we can do to lower more prices sooner,” said Pallone. "While President Trump claims to care about reining in prices at the pharmacy counter, he’s actually signing laws to undermine negotiation and enriching himself with the TrumpRx scam. It’s time for Republicans to stop playing games and start working with Democrats to build on the progress of Medicare price negotiation. It’s time we make these lower prices available to everyone with private insurance, cap drug costs for more patients, and undo the harm Republicans caused in their Big Ugly Bill.”
“The skyrocketing cost of drugs is continuing to undermine the health and financial security of American consumers and taxpayers – who are routinely forced to pay far more for the same drugs as people in other countries,” said Scott. “Our economy bears the burden of high prescription drug costs. Employer-provided health plans spend billions of dollars every year to cover the cost of drugs. The American people have also made it clear that they want Congress to act. This bill delivers on our promise to build upon the historic progress made by the Inflation Reduction Act and will allow us to further lower drug prices.”
As a senior member of the Ways and Means Committee, Larson helped author and pass the Inflation Reduction Actin 2022, finally allowing Medicare to negotiate lower drug prices, capping annual out-of-pocket drug costs for seniors at $2,000/year, eliminating co-pays for essential vaccines, and capping the price of insulin at $35/month.
The Republican Budget President Trump signed into law earlier this year restricted Medicare’s price negotiation powers by allowing pharmaceutical companies to claim orphan drug designations. In September, Larson introduced the Protect Patients from Costly Care Actto repeal this Big Pharma loophole.