Democrats’ New Drug Pricing Bill Will Jack Up Prices For Americans, CBO Finds – By Dylan Housman (Daily Caller) / Aug 5, 2022
Democrats’ landmark new drug pricing legislation could actually result in an initial increase in drug prices, according to information released Thursday by the Congressional Budget Office (CBO).
The non-partisan CBO reported that the legislation, which places a cap on price increases so they cannot go up faster than inflation, could lead drug companies to raise launch prices of new drugs to make up the difference. The CBO also said that allowing Medicare to negotiate certain drug prices directly would contribute, albeit not as much, to higher prices.
Democrats' party-line drug pricing legislation will likely cause manufacturers to raise the launch prices of new drugs, the Congressional Budget Office projected. https://t.co/rGmtBnkyJn
— Axios (@axios) August 5, 2022
The possibility that pharmaceutical companies will counteract the inflation-linked price cap by simply raising starting prices will undercut some messaging in favor of the bill, which Democrats argue will rein in major corporations allegedly price-gouging Americans for necessary medicine