House Passes Bill Requiring Drug Price Negotiations

The Democrat-controlled U.S. House of Representatives has approved a bill that for the first time would require the federal government to negotiate prices for drugs, reports Politico . Senate Majority Leader Sen. Mitch McConnell (R-Ky.) has refused to take up the legislation, while President Trump has pledged to veto it should it reach his desk. Democratic leaders nonetheless see the bill as a step toward reining in soaring drug prices. The measure would require the government to negotiate the price of at least 25 Medicare Part D drugs each year, and mandate federal officials to work out the cost of at least 50 drugs annually. Separately, drugmakers' ability to annually raise prices in Medicare would be constrained, forcing them to rebate the portion of the hike that exceeds the rate of inflation. The bill also would impose a cap on out-of-pocket drug costs for Medicare enrollees, with the projected savings to be channeled toward expanded Medicare benefits for seniors' dental, vision, and hearing coverage. However, Republicans object to the bill's forecast stifling of new drug launches, which Rep. Kevin Brady (R-Tex.) said poses a "dangerous trade-off" between lower drug prices and new medications reaching market.