Rep. Peter DeFazio Introduces Legislation to Hold President Trump Accountable, Negotiate Lower Drug Prices
Rep. Peter DeFazio today introduced the PRICE (Prescription Reduction in Costs for Everyone) Act, legislation to require President Trump to negotiate lower drug prices with pharmaceutical companies.
The bill, H.R. 1775, would repeal a prohibition on the federal government’s ability to negotiate Medicare Part D drug prices.
“President Trump is a self-proclaimed master negotiator,” said Rep. Peter DeFazio. “For months, he has railed against prescription drug costs and promised that under his presidency, he would change bidding procedures and save us billions of dollars. Meanwhile, seniors across the country are rationing their medications because they can’t afford the cost of their prescriptions each month. My bill will require President Trump to keep his promises and apply his celebrated deal-making skills to this issue.”
Throughout the Trump presidential campaign, the President repeatedly spoke in support of a new national bidding process to bring down prescription drug costs.
Rep. DeFazio’s legislation would establish a presidentially-administered drug plan to compete with privately-administered drug plans currently offered under Medicare Part D. Allowing the federal government to negotiate drug prices and allowing a public drug plan could save the federal government up to $20 billion over ten years, according to past CBO estimates.
In 2003, Congress pushed through Medicare Part D, which included a provision that prevents the federal government from negotiating better prescription drug prices for Medicare recipients. This has cost taxpayers over half a trillion dollars in handouts to the drug industry.
In the U.S., private insurance companies and the Veterans Administration are able to negotiate prices, but the federal government is prohibited from negotiating drug prices for Medicare, giving drug companies free reign to charge Medicare recipients higher prices more than anyone else in the world.
Every other developed country in the world permits their government to negotiate drug prices for their citizens.