Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Amy Klobuchar (D-Minn.) 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 punishing drug companies for raising prescription drug prices in the commercial market faster than the rate of inflation. The Lower Drug Costs for Families Act will also be introduced in the House of Representatives by Congressman Steven Horsford (D-Nev.).
Cortez Masto’s legislation builds on the Inflation Reduction Act’s work to lower health costs for seniors with Medicare by ensuring that all Nevadans are protected from outrageous increases in prescription drug prices – including those on private health insurance and employer-sponsored health plans like union health funds.
“In 2022, Democrats successfully lowered drug costs for millions of American seniors on Medicare – but the job’s not done,” said Senator Cortez Masto. “It’s time to hold Big Pharma accountable for raising costs on the American people. No one – no matter what health insurance they use – should ever face these ridiculous price hikes again.”
“During the last Administration, we took significant steps towards bringing down prescription drug prices when provisions based on my bill to empower Medicare to negotiate were signed into law, but there’s still more we can do to build on that progress,” said Senator Klobuchar. “Our legislation would lower prices by further protecting consumers from price-gouging by pharmaceutical companies. I’ll keep working to ensure all Americans can reliably access the affordable, life-saving medications they need.”
“Nevadans should never have to choose between life-saving prescriptions and making ends meet,” said Congressman Horsford. “I’m proud to partner with Sen. Cortez Masto on the Lower Drug Costs for Families Act and look forward to introducing the House companion bill. No Nevadan should ever be priced out of their own health and wellbeing.”
“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 an 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-Wis.), Richard Blumenthal (D-Conn.), Ruben Gallego (D-Ariz.), John Hickenlooper (D-Colo.), Angus King (I-Maine), Jack Reed (D-R.I.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Peter Welch (D-Vt.), and Ron Wyden (D-Ore.).
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.
Senator Cortez Masto has been a champion of affordable, quality health care, including mental and behavioral care. Cortez Masto has pushed pharmacy benefit managers to help lower prescription drug costs. She passed legislation to allow Medicare to negotiate lower drug prices and cap the cost of insulin at $35-a-month for Medicare recipients through the Inflation Reduction Act. To lower health care costs for all Nevadans, Cortez Masto worked to expand health care subsidies for individuals and families getting health care through the exchange. She recently introduced bipartisan legislation to provide patients with transparent and timely access to prescription medications and treatments.
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