Senate Finance leaders in talks on deal to limit drug price increases
The leaders of the Senate Finance Committee are in bipartisan talks on a potentially sweeping deal to limit drug price increases in Medicare, according to sources familiar with the negotiations.
Sen. Ron WydenRonald (Ron) Lee WydenOvernight Health Care — Sponsored by Campaign for Tobacco-Free Kids — Trump issues order to bring transparency to health care prices | Fight over billions in ObamaCare payments heads to Supreme Court Senate set to bypass Iran fight amid growing tensions Overnight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record MORE (Ore.), the top Democrat on the panel, is pushing to make drug companies pay back rebates to Medicare’s prescription drug program, called Part D, if their prices rise faster than inflation. Another measure would force drug companies to pay money back to Medicare if they launch a new drug with a high price.
Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyGrassley raises concerns about objectivity of report critical of GOP tax law’s effects Overnight Health Care: Key Trump drug pricing proposal takes step forward | Missouri Planned Parenthood clinic loses bid for license | 2020 Democrats to take part in Saturday forum on abortion rights Key Trump proposal to lower drug prices takes step forward MORE (R-Iowa) has not ruled the idea out; asked specifically about the paybacks for price increases that outpace inflation, he confirmed he was involved in the discussions.
“I’m not going to answer your question for this reason, that we’re negotiating on that,” Grassley told The Hill.
“We’ve got to get a bipartisan agree-ment,” he added.
But some GOP senators are pushing back on the far-reaching proposal, arguing it comes too close to price controls for drugs, which Republicans have long opposed.
Grassley and Wyden have been in talks for months on a package to lower drug prices, but this proposal could have a greater impact than other ideas that have been discussed, such as rearranging the incentives for different industry players in Medicare Part D.
Wyden declined to comment on the specifics of the negotiations but said that he is pushing to make sure there are significant changes that actually lower the cost of drugs in any deal he signs on to.
“You’ve got to have meaningful steps to rein in high drug prices, and the chairman and I are talking about [the drug pricing package] every day, sometimes several times a day, and the focus is on getting it right,” Wyden told The Hill last week.
The proposal could face a tough road among rank-and-file GOP lawmakers.
Grassley is well known as an advocate of lowering drug prices and has been willing to oppose the powerful pharmaceutical industry on some issues — to a much greater degree than many other Republican lawmakers.
Sen. Mike CrapoMichael (Mike) Dean CrapoHouse panel to hold hearing on Facebook cryptocurrency project On The Money: S&P hits record as stocks rally on Fed cut hopes | Facebook’s new cryptocurrency raises red flags for critics | Internal IRS watchdog rips agency’s taxpayer service | Apple seeks tariff relief Facebook’s new cryptocurrency raises red flags for critics MORE (R-Idaho), a senior member of the Finance Committee, told The Hill on Tuesday that he is “evaluating” the rebate proposal. “I haven’t reached a conclusion on it yet,” he said.
Asked if other GOP senators thought the idea went too far, Crapo replied, “That’s what I understand.”
Drug companies, a powerful force in Washington, are sure to oppose the idea, adding to its obstacles.
Still, there appears to be momentum on both sides for taking some action on drug pricing.
President TrumpDonald John TrumpNew EPA rule would expand Trump officials’ powers to reject FOIA requests Democratic senator introduces bill to ban gun silencers Democrats: Ex-Commerce aide said Ross asked him to examine adding census citizenship question MORE has been calling for lower drug prices for years, and his staff is in talks with Speaker Nancy PelosiNancy PelosiThe Hill’s Morning Report – In exclusive interview, Trump talks Biden, Iran, SCOTUS and reparations Lawmakers ‘failed us’ says ICE chief Pelosi, Democratic leaders seek to quell liberal revolt over border bill MORE’s (D-Calif.) office about allowing Medicare to negotiate drug prices in some form.
But the Senate Finance Committee is working on a separate track, and Grassley has said he opposes giving Medicare that negotiation authority.
The Finance Committee’s timeline has slipped. Grassley had been trying to release a drug pricing bill by mid-June, but that date has now been pushed back to July.
The Senate Health Committee, which has its own package aimed at protecting patients from surprise medical bills along with other provisions, is moving at a faster pace, with a markup slated for Wednesday.
If the Finance Committee can reach a deal, that bill could be combined with the Health Committee package when it goes to the full Senate for a vote.
Sen. Lamar AlexanderAndrew (Lamar) Lamar AlexanderOvernight Health Care — Sponsored by Campaign for Tobacco-Free Kids — Trump issues order to bring transparency to health care prices | Fight over billions in ObamaCare payments heads to Supreme Court GOP lawmakers want Mulvaney sidelined in budget talks Horse abuse for ribbons and prizes has to stop MORE (R-Tenn.), the Health Committee chairman, said Tuesday that he hopes his package, along with any health bills that could be added from the Finance or Judiciary committees, would get a vote on the Senate floor before the end of July.