Rep. Peters’ Drug Pricing Reform Plan One Step Closer to Becoming Law
SAN DIEGO – As the House of Representatives prepares to vote on the Inflation Reduction Act this week, Rep. Scott Peters (CA-52) released the following statement on the bill’s prescription drug pricing provisions originally laid out in his Reduced Costs and Continued Cures Act.
“Offering an alternative plan to H.R. 3, the drug pricing bill offered by Democratic leadership in September 2021, was a tough position to take, and led to intense scrutiny and resistance. But I knew H.R. 3 would not get 50 votes needed to clear the Senate, and that it would stifle drug discovery and the development of cures.
“Today, I am gratified that our drug pricing reform framework was included. We worked hard in the past year through negotiations and setbacks, and did not give up on delivering this relief for Americans struggling to pay for medications. I want to thank my colleagues, Representatives Stephanie Murphy, Kathleen Rice, Kurt Schrader, and Lou Correa for supporting my plan and seeing this proposal through. I also appreciate the partnership and leadership of Senator Kyrsten Sinema.”
Here’s what some healthcare advocates are now saying about the drug pricing reforms in the Inflation Reduction Act:
“Thanks to today’s historic vote in the Senate, millions of Americans 50+ are one step closer to real relief from out-of-control prescription drug prices. This bill will save Medicare hundreds of billions of dollars and give seniors peace of mind knowing there is an annual limit on what they must pay out-of-pocket for medications. Lowering prescription drug prices is a top priority for Americans, with more than 80% of people across both political parties supporting the measure. We thank all the senators who voted today to lower drug prices.” - Jo Ann Jenkins, AARP Chief Executive Officer on August 7, 2022
“Make no mistake, this legislation is game changing. It alters the trajectory of drug pricing and policy in the United States. It finally begins to break the power of multinational drug corporations to dictate prices of brand name drugs to the American people. It marks a shift to reforming the system in order to make it work for the people it is supposed to serve – rather than the people who profit from it.” - David Mitchell, founder of Patients For Affordable Drugs Now on August 7, 2022
Drug pricing provisions in the Inflation Reduction Act would
- allow Medicare to directly negotiate drug and insulin prices in 2023,
- cap out-of-pocket costs that seniors pay for medications at $2,000 per year and no more than $35 for insulin,
- require drug companies to rebate back the difference to Medicare if they raise prices higher than inflation,
- and stabilize Part D premiums for seniors in Medicare, among other transformative provisions.