The plan will grant the government power to regulate the prices of some of the most expensive drugs and limit out-of-pocket costs for seniors.
House and Senate Democrats reached a breakthrough agreement on lowering prescription drug prices Tuesday, putting an end to one of the party’s thorniest disputes in their $1.75 trillion reconciliation bill. “I’m pleased to announce that an agreement has been reached to lower prescription drug prices for seniors and families in the Build Back Better legislation,” Senate Majority Leader Chuck Schumer, D-N.Y., said at a press conference. “Fixing prescription drug pricing has consistently been a top issue for Americans, year after year, including the vast majority of both Democrats and Republicans.” The Senate’s top Democrat added that the plan will grant the government power to regulate the prices of some of the most expensive drugs on the market and redesign the Medicare drug benefit so it limits out-of-pocket costs for seniors to $2,000 per year. The last-minute deal surprised Democrats outside of leadership, in part because Medicare negotiation powers were not part of a framework agreement that President Joe Biden had released last week, and which he had pitched to House Democrats as a done deal.
