On November 2nd, House Speaker Nancy Pelosi stated that House members had reached an agreement on landmark provisions to decrease prescription drug pricing.
Following the agreement, President Joe Biden announced the Prescription Drug Pricing Plan as a part of the Build Back Better Act framework.
As per the Plan, a tax penalty will be levied on pharmaceutical companies that increase drug pricing faster than inflation. Additionally, Medicare will be authorized to negotiate prices for certain high-cost prescription medicines.
The plan proposes a $2,000 out-of-pocket cap for seniors’ annual drug expenditures under Medicare Part D. The proposal will also lower costs to ensure that citizens don’t pay over $35 for insulin per month.
The White House press release read, “Lawmakers have also agreed to lower seniors’ cost-sharing for all types of drugs, and they are working expeditiously to finalize legislative text that will save seniors money at the pharmacy counter without increasing premiums.”
