Congressional Democrats want to let Medicare negotiate prices with drugmakers. Here’s what that could mean for the cost of coverage – By Sarah O’Brien (CNBC) / Aug 19 2021
- Under the 2003 legislation that created Medicare Part D to provide beneficiaries with prescription drug coverage, the government is prohibited from negotiating prices with drugmakers.
- President Joe Biden and congressional Democrats want to change that as a way to reduce the cost of prescription drugs.
- Lowering drug costs is one goal of Democrats’ $3.5 trillion spending plan.
A push to rein in the cost of prescription drugs for Medicare beneficiaries could emerge on Capitol Hill in the coming months.
President Joe Biden called on Congress last week to reduce those costs through several means: letting Medicare negotiate with drug manufacturers, generally limiting price increases to the inflation rate and capping beneficiaries’ annual out-of-pocket spending on prescriptions to about $3,000.
At the same time, cutting drug prices is a goal included in congressional Democrats’ budget resolution, which calls for $3.5 trillion in spending on climate change, health-care and family service programs.
The Democrat-controlled Senate already approved the resolution, and the House — where Democrats also are the majority — is expected to vote on it next week. The budget plan also calls for Medicare to provide dental, vision and hearing coverage.
