WASHINGTON, D.C. – U.S. Senators Elissa Slotkin (D-MI), Catherine Cortez Masto (D-NV) and Amy Klobuchar (D-MN) introduced the Lower Drug Costs for Families Act to make prescription drugs more affordable, hold Big Pharma accountable, and reduce the national deficit by billions of dollars.
The Senators’ bill would do so by penalizing drug companies for raising prescription drug prices in the commercial market faster than the rate of inflation. I also co-led similar legislation in the House last Congress.
This legislation builds on the Inflation Reduction Act’s work to lower health costs for seniors with Medicare by ensuring that all Michiganders are protected from outrageous increases in prescription drug prices – including those on private health insurance and employer-sponsored health plans like union health funds.
“Big Pharma has price gouged Americans for way, way too long, and lowering the cost of health care and prescription drugs for Michiganders is quite literally what inspired me to run and serve in Congress,” said Senator Slotkin. “To me, it’s simple: everyone should have access to health care that they can afford. This bill takes important steps towards holding Big Pharma accountable and getting high prices under control.”
“The Lower Drug Costs for Families Act will extend the drug price inflation protections that apply to seniors in Medicare to everyone who has private insurance. Research shows that billions will be saved in premiums and copayments by people who have coverage through their job, through n Affordable Care Act marketplace plan, or coverage they buy on their own. We thank Senator Cortez Masto for introducing this important legislation,” said Jody Calemine, Director of Government Affairs, AFL-CIO.
Under current law, drug companies only have to pay back money if they raise their prices faster than inflation on drugs covered by Medicare. The Lower Drug Costs for Families Act would expand this successful program by:
- Counting the number of drugs sold to people with private insurance when calculating penalties owed to Medicare for drug price hikes, effectively ensuring that Big Pharma faces consequences for overcharging more than 180 million Americans and
- Extending Medicare solvency by returning collected fines directly to the Medicare Supplementary Medical Insurance Trust Fund.
The Lower Drug Costs for Families Act is cosponsored by U.S. Senators Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Ruben Gallego (D-AZ), John Hickenlooper (D-CO), Angus King (I-ME), Jack Reed (D-RI), Tina Smith (D-MN), Peter Welch (D-VT), and Ron Wyden (D-OR).
This legislation has been endorsed by the AFL-CIO, the American Federation of Teachers, Patients for Affordable Drugs Now, and the United Mine Workers of America.
Read the full bill here.
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