Top Democratic Sen. Ron Wyden has outlined goals for reducing prescription drug prices, which include sticking points for Republican lawmakers wary of expanding federal interference in the United States healthcare system.
“The root causes of high drug prices are numerous, and we urgently need reforms that provide real solutions,” the Oregonian said. “Pricing reform across the supply chain can support the future of American innovation by creating the right incentives to develop new, truly valuable treatments while also ensuring American families can afford them.”
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Wyden, who chairs the Senate Finance Committee, released an outline of his priorities for future drug pricing legislation on Tuesday. The list of proposals includes granting the secretary of the Department of Health and Human Services the authority to negotiate the price that the government will pay for prescription drugs. The idea was included in H.R. 3, a drug pricing bill introduced by House Speaker Nancy Pelosi.
Republicans, meanwhile, have historically opposed efforts by Democrats to introduce government involvement in price negotiations, arguing that it could dampen incentives for the pharmaceutical industry to invest in research and development of new treatments.
Wyden also called on drug intermediaries known as pharmacy benefits managers who receive rebates for high list prices of prescription drugs to pass those savings on to patients paying for their medications at the pharmacy counter.
“The legislation will also include targeted policies to ensure that patients see savings on specific types of critical drugs, such as insulin, for which the rebate dynamics are extreme and inhibiting access,” he said.
Wyden added in his proposal a requirement for drug manufacturers to pay a rebate to Medicare when a drug’s price rises faster than inflation rates, an extension of Medicare prescription drug benefits to non-Medicare beneficiaries, and an initiative to break up patent stacking by pharmaceutical companies for expensive prescription drugs, opening up the market for cheaper generic versions.
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Wyden has worked on drug pricing legislation with the Republican Party in the past, but the latter has slammed efforts to get the federal government involved in regulating the U.S. healthcare system. Wyden and Iowa Republican Sen. Chuck Grassley drafted a proposal in 2019 that came close to Wyden’s priorities outlined on Tuesday. However, the plan did not include an allowance for the HHS secretary to negotiate prescription drug prices, which is still a priority for Pelosi and other liberal members of Congress.
