Democrats in the House have introduced a new bill that aims to further expand Medicare's ability to negotiate drug prices.
The bill, titled the Lowering Drug Costs for American Families Act, would allow Medicare to negotiate prices for more drugs each year, from 20 to 50, and make those prices available in the commercial insurance market. It could cap annual out-of-pocket costs for prescriptions and insulin at $35 per month.
The legislation also seeks to close a "loophole" established in the One Big Beautiful Bill Act that allows pharmaceutical companies to dodge negotiation for a drug that has orphan status.
“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 Education and Workforce Committee ranking member Bobby Scott, D-Va., in an announcement. “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," Scott continued. "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."
The Inflation Reduction Act introduced the drug price negotiation under the Biden administration, and, now, the industry is awaiting the final negotiated prices for the second round of drugs, which must be released before Nov. 30.
Expanding those protections to the commercial market would reach the more than 164 million workers who get their coverage through their employer as well as the 24 million people who are enrolled in coverage through the Affordable Care Act's exchanges.
"Democrats gave Medicare the power to negotiate prescription drug prices, but there’s more that we can do to lower more prices sooner,” Energy and Commerce Committee ranking member Frank Pallone, D-N.J., said. "It’s time we make these lower prices available to everyone with private insurance."