Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE

Democrats eye sweeping drug-pricing reform to fund infrastructure spending

By Brian Buntz | March 25, 2021

Bank notes

Image courtesy of Pixabay

Democratic lawmakers joined by Sen. Bernie Sanders (I-Vt.) are preparing drug pricing controls that could help bankroll a planned $3 trillion infrastructure bill they will attempt to pass in the summer.

If Democrats add the drug-pricing proposal to their next budget reconciliation bill, they could pass it with a simple majority in both the House and Senate. Democrats used the same maneuver to pass the $1.9 trillion COVID-19 stimulus bill.

Democrats have introduced three bills that could enable substantial pricing reform if passed. They would allow Medicare to negotiate drug pricing, tie the price of drugs to five other nations with lower median pharma expenditures, and permit Americans to import drugs from Canada and other countries.

The Medicare Drug Price Negotiation Act is modeled after a previous bill — the “Elijah E. Cummings Lower Drug Costs Now Act” (H.R. 3), which would levy a range of drug pricing controls. UBS analysts have referred to the legislation as “onerous” for the industry. PhRMA agrees, stating in 2019 that the proposal “dramatically expands the role of the federal government in health care decision making and puts medical innovation at risk.”

The Democrat-controlled U.S. House of Representatives passed the bill along party lines in December 2019 but failed to gain traction in the Senate.

It is unclear whether moderate Senators now would back the bill, which has the support of progressive Democrats.

The plan could save the U.S. government close to “half a trillion dollars,” according to Speaker Nancy Pelosi (D-Calif.).

That figure is likely a reference to the Congressional Budget Office’s assessment that H.R. 3 could save $456 billion over ten years.

Some pharma lobbyists are concerned Democrats could view their industry as a “piggy bank” for infrastructure spending, according to Politico.

According to a recent Rand report, U.S. drug prices in 2018 were 256% higher than in other comparable countries.

 

 

 

About The Author

Brian Buntz

The pharma and biotech editor of WTWH Media, Brian is a veteran journalist with more than 15 years of experience covering an array of life science topics, including clinical trials, drug discovery and development and medical devices. Before coming to WTWH, he served as content director focused on connected devices at Informa. In addition, Brian covered the medical device sector for 10 years at UBM. At Qmed, he overhauled the brand’s news coverage and helped to grow the site’s traffic volume dramatically. He had previously held managing editor roles on two of the company’s medical device technology publications. Connect with him on LinkedIn or email at bbuntz@wtwhmedia.com.

Comments

  1. Bill Hons says

    March 30, 2021 at 12:35 pm

    When profitability is denied to free enterprise it will kill the industry. It’s all about government control and it will be forced upon the citizens of the US and will kill research, development, and entrepreneurship. The wrong drug pricing controls will kill all investment.

    Reply
  2. George Lister says

    March 30, 2021 at 2:43 pm

    256% higher than in other comparable countries!!!???!!!

    Reply

Tell Us What You Think! Cancel reply

Related Articles Read More >

Genentech roche
Roche, Genentech to build $700M drug manufacturing plant in North Carolina
These are the logos of Otsuka Medical and ICU Medical.
ICU Medical, Otsuka Pharmaceutical Factory launch joint IV supply chain venture
Amgen
Amgen to spend $900M to expand U.S. biopharma manufacturing
Roche
Roche to invest $50B in U.S. over next five years
“ppw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news, technologies, and developments in Pharmaceutical Processing.

DeviceTalks Tuesdays

DeviceTalks Tuesdays

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Pharmaceutical Processing World
  • Subscribe to our E-Newsletter
  • Contact Us
  • About Us
  • R&D World
  • Drug Delivery Business News
  • Drug Discovery & Development
  • DeviceTalks
  • MassDevice
  • Medical Design & Outsourcing
  • MEDICAL TUBING + EXTRUSION
  • Medical Design Sourcing
  • Medtech100 Index
  • R&D 100 Awards

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE