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Democrats to Give Medicare the Power to Negotiate Lower Drug Prices in the Build Back Better Act

Democrats have reached a historic agreement to drive down prescription drug prices for the American people. For nearly 20 years, Medicare has been banned from negotiating the price of prescription drugs, and Big Pharma has been able to dictate prices while Americans pay three times more for their medications than people in other countries. The Build Back Better Act will finally give Medicare the power to negotiate, and it will cap seniors out-of-pocket drug costs at $2,000 per month, limit diabetic Medicare patients’ insulin costs to $35 per month, and end excessive price gouging of medicines for all Americans. 

Thanks to the leadership of President Biden and Democrats in Congress, Americans will finally see real relief at the pharmacy counter, and millions of families will no longer have to struggle to afford the medications they need to survive. 

HEADLINES

Politico: ‘A Massive Step Forward’: Democrats Clinch Drug Pricing Deal. “Democrats on Tuesday announced an agreement on drug pricing reform, coming out in favor of allowing Medicare Part D to negotiate directly with pharmaceutical companies for the first time since its creation, a move the drug industry has fought for nearly two decades.” [Politico, 11/2/21]

NPR: Democrats’ Deal On Prescription Drugs Would Lower Costs For Seniors. “The 2021 threshold is currently set at $6,500 for out-of-pocket drug costs, a number that activists in the health care space argue is too high and can still be detrimental to low- and middle-income Americans, for whom the program is designed. The White House in a Tuesday evening statement praised the compromise, calling the ban on direct negotiations between Medicare and drug makers an “unfair prohibition” that hurt American seniors.” [NPR, 11/2/21]

The New York Times: Democrats Add Drug Cost Curbs To Social Policy Plan, Pushing For Vote. “House Democrats reached a deal on Tuesday to add a measure to curb prescription drug costs to President Biden’s $1.85 trillion social safety net plan, agreeing to allow the government for the first time to negotiate prices for medications covered by Medicare as they pushed for a quick vote on the bill.” [The New York Times, 11/2/21]

The Washington Post: Democrats Announce Deal On Prescription Drug Pricing As Another Part Of Spending Plan Comes Into Focus. “Under the deal, the U.S. government would gain the ability to negotiate some drug prices on behalf of seniors who participate in Medicare. Such a power for the first time would give the benefit program leverage to drive down the price of medicine, allowing the federal government — along with millions of families — to save money.” [The Washington Post, 11/2/21]

Axios: Democrats’ Historic Compromise On Prescription Drug Prices. “The deal hits on Democrats’ three main pillars of drug price reform: It allows Medicare to negotiate the prices of some drugs, it puts a cap on how much drugmakers can hike prices in both Medicare and the commercial market, and it redesigns the Medicare Part D benefit in a way that significantly reduces seniors’ out-of-pocket costs.” [Axios, 11/3/21]

CNBC: Democrats Reach A Breakthrough Deal On Drug Prices, As Spending Bill Nears The Finish Line. “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… 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…” [CNBC, 11/2/21]

Bloomberg: Democrats Reach Drug Pricing Deal Key To Vote On Biden Plan. “Schumer said the price of insulin will go from $600 per month to $35 under the deal, which also would put a $2,000 annual cap on Medicare drug costs. ‘By empowering Medicare to directly negotiate prices in Part B and Part D, this deal will directly reduce out-of-pocket drug spending for millions of patients every time they visit the pharmacy or doctor,’ Schumer said.” [Bloomberg, 11/2/21]

The Washington Post: Democrats Are Delivering Action On Drug Prices To Voters. “The compromise reached yesterday allows Medicare to negotiate the cost of prescription drugs for the first time. The plan delivers a defeat to the pharmaceutical industry, but it’s a far cry from the sweeping reforms Democrats originally envisioned… Democrats pushing for a more far-reaching policy are coalescing around the message that something is better than nothing.” [The Washington Post, 11/3/21]

Washington, D.C. — Today, Democrats in Congress reached a historic agreement to lower prescription drug prices for all Americans. This agreement gives Medicare the power to negotiate lower drug prices, caps seniors’ out-of-pocket drug costs, and stops excessive price increases for existing medications. In response, Protect Our Care Chair Leslie Dach issued the following statement: 

“President Biden and Democratic leaders fought tirelessly to include prescription drug reform in the Build Back Better Act, and now they have a plan to make it happen. For far too long, drug companies have dictated prices. Americans pay three times more than people in other countries, but that all stops with this plan.

“Now, Medicare will have the power to negotiate lower drug prices, no senior will pay more than $2,000 a year for their prescriptions, no diabetic Medicare patient will pay more than $35 per month for their insulin, and every American will be protected from egregious price increases for the drugs they need. Combined with the other health measures in the Build Back Better Act, Democrats will lower insurance premiums, expand coverage and lower the cost of drugs for millions. This is the most significant expansion of affordable health care since the passage of the Affordable Care Act. That’s a big deal.

“The only loser today is Big Pharma. Instead of wasting millions of dollars on failed lobbying efforts and scare tactics, drug companies can now put more money towards innovation and research. Reducing the cost of prescription drugs will save lives, and we have President Biden and Democrats to thank for bringing real relief to millions of people.” 

U.S. Representative Angie Craig (D-MN-02) and 14 swing-district Democratic members of the House released a letter calling for the final Build Back Better Act to give Medicare the power to negotiate lower prescription drug prices. Members recognize that delivering lower drug prices means keeping their promises to voters.  

They wrote, “With the Build Back Better agenda, we have a perhaps once in a generation opportunity to change the status quo and make good on our promise that no one should have to choose between affording their prescription drugs or food or housing. The public is on our side. Big Pharma is not.” Click here to read the full letter. 

From Washington Post’s Health 202: “House Democrats from some of the most vulnerable seats are urging leadership to include drug pricing measures in the bill. ‘Soon, we must go back to our districts and explain what we’ve done in Washington to make our constituents’ lives better,’ the 15 frontline Democrats wrote in a letter Sunday. ‘We ran on upsetting the status quo and lowering out-of-pocket costs for healthcare and prescription drugs.’” [Washington Post, 11/1/21] 

From Politico Huddle: “Fifteen frontline Democrats sent a letter to Speaker Nancy Pelosi (D-Calif.) and House Majority Leader Steny Hoyer (D-Md.) Sunday night urging the inclusion of prescription drug pricing provisions in the final social spending package, reminding their leadership of the promises they made to voters. ’As majority-makers in competitive districts, we promised our constituents that we would come to Washington to fight on their behalf for lower drug prices. We cannot turn back now on our promise to the American people,’ the lawmakers wrote.” [Politico, 11/1/21]

Watch the Event Here.

Washington, DC — Today, Senator Amy Klobuchar (D-MN) joined health care advocates and Protect Our Care for a virtual roundtable on lowering drug costs and keeping meaningful Medicare negotiation in the final Build Back Better Act. Congress has a once-in-a-generation opportunity to bring relief to patients struggling to afford their medications. During today’s event, storytellers from across the country shared what’s at stake for them if lawmakers fail to act. 

The roundtable comes after Democrats announced a framework for the Build Back Better Act that fails to include any measures to lower prescription drug prices. While Big Pharma continues to lobby against action to lower drug prices for patients, Democratic leadership have pledged to include Medicare negotiation in the final bill. 

“We’re in this fight because too many Americans are struggling to access their medications,” said U.S. Senator Amy Klobuchar (D-MN). “It is more expensive to get prescription drugs in our country than in other countries, even though it’s our taxpayers that have funded so much of the research in the past five years. That’s why I have been spearheading these efforts to let Medicare negotiate since I’ve been in the Senate. It’s common sense policy.”

“The fight is not over to stand up to Big Pharma and put patients over profits,” said Protect Our Care Chair Leslie Dach. “It is unconscionable that millions of families are forced to choose between the medications they need to survive and paying for other necessities like food or rent. We must meet this moment and deliver on the needs of families nationwide by giving Medicare the power to negotiate for lower drug prices.” 

“Legislation like Medicare negotiation is going to save lives,” said Mindy Salango, Type 1 Diabetic and patient storyteller from West Virginia. “That is what is at stake not only in West Virginia, but across the country. We need our leaders to step up and speak for us and help us because that’s what we voted for. That’s what we put them in office for. And this bill is completely across party lines. Diabetes didn’t ask me if I was a liberal or conservative when it decided to enter my life. People want it, we need it.”

“I suffer from systemic lupus. In order to keep it under control, you need medications. There was one medication that was $3,000 a month, I cannot afford it. And when you’re on a fixed income, it blows your budget,” said Beatriz Morrison, a patient storyteller from Arizona. “There’s a lot of people out there in my neighborhood, in our country, that have to forego medications — it just isn’t right. I have a senator that doesn’t want to help us. [Senator Sinema] said she was going to help us, and she doesn’t seem to want to. A lot of people are out there dying.”

“I’ve been a nurse for 37 years, 12 of those years I’ve worked with the high-risk epilepsy population, who often need three to four medications to remain with controlled seizures. I had the heartwrenching experience of losing a patient who was 26 years old. Like many patients, Jay was unable to afford medication to treat his seizures, and it left him with nowhere to turn.” said Rachelle Compton, a nurse from California. “It just doesn’t make any sense to me that this is allowed in America. People’s lives are actually lost due to the pharmaceutical situation that we have here. It’s maddening and it’s really sad.” 

“I’m a community pharmacist in Teaneck, New Jersey, and every single day in my practice, customers come to me complaining about the cost of prescription drug prices,” said Michael Fedida, community pharmacist and pharmacy owner of J&J Pharmacy in New Jersey. “The 1500 lobbyists that are in Washington seem to have much more power than the entire Senate and Congress. It’s just so frustrating that it’s become a game of just money. People don’t seem to care about people’s lives and the quality of life that people are entitled to in this country.” 

“Pre-COVID, I didn’t have to think about my medical bills. I didn’t have to think about how I was going to pay for prescriptions. Through COVID, we ended up closing most of our businesses. I suffer from multiple autoimmune disorders and have several other illnesses, and now I have to think about ‘Oh, am I going to be able to pay for this $2,000 medication this week? Am I going to be able to pay for this $300 item,’” said Himali Patel, small business owner and patient storyteller from Georgia. “It’s up to the powers that be to go ahead and fight for our people to do better and do right by us.”

Washington, DC — On Saturday, October 30 at 12:00 PM ET // 11:00 AM CT Senator Amy Klobuchar (D-MN) will join health care advocates and Protect Our Care in a roundtable on the importance of lowering drug costs and immediately passing meaningful Medicare negotiation.

Virtual Roundtable:

WHO:
U.S. Senator Amy Klobuchar (D-MN) 

Leslie Dach, Chair, Protect Our Care

Mindy Salango, Type 1 diabetic and patient storyteller (West Virginia)

Beatriz Morrison, a patient storyteller who struggles to afford her medication (Arizona)

Rachelle Compton, nurse whose patient died after not being able to afford his medications (California)

Michael Fedida, community pharmacist and pharmacy owner of J&J Pharmacy (New Jersey)

Himali Patel, small business owner and patient storyteller from (Georgia)

Jennifer Dotson, patient storyteller who also falls in the Medicaid coverage gap (Florida)

WHAT: Roundtable With Storytellers and Advocates on Medicare Negotiation and Lowering Drug Costs in the Build Back Better Act

WHERE: Watch the Event Here

WHEN: Saturday, October 30 at 12:00 PM ET // 11:00 AM CT

Rep. Welch and Democratic Leaders Are Working Tirelessly to Ensure Meaningful Medicare Negotiation Remains in the Build Back Better Act

Listen to the Call Here.

Washington, D.C. — Today, U.S. Representative Peter Welch (D-VT-AL) joined Protect Our Care for a press call to discuss ongoing efforts to include strong provisions on Medicare negotiation in the final Build Back Better package. Medicare negotiation enjoys nearly universal support among voters and would dramatically bring down health care costs for the American people. 

The call comes after lawmakers announced a framework yesterday for the Build Back Better Act that fails to include any measures to lower prescription drug prices. However, Democratic leadership has pledged to include Medicare negotiation in the final bill. Today’s call made clear that lawmakers must stand up to Big Pharma and lower prescription drug prices once and for all. 

“Reports of drug price negotiation’s exclusion from Build Back Better are premature. My colleagues and I continue to fight because we know that failing to include these provisions would be political malpractice,” said U.S. Representative Peter Welch (D-VT-AL). “We know that our constituents are struggling to access the life-saving and life-extending drugs that they need because of pharma’s unchecked price gouging, and we know that we have a responsibility to do everything we can to protect them. Negotiations are ongoing and we’ll continue to work to get this done.”

“Now is not the time to back down from lowering drug prices. Failure to include negotiation in Build Back Better means maintaining the broken system that lets drug companies dictate outrageous prices while millions of Americans struggle to afford their medications,” said Protect Our Care Chair Leslie Dach. “Medicare negotiation is a win-win–it’s not only the right thing to do, but it’s the smart thing to do because it enjoys nearly universal support from voters. Democrats ran and won on health care in 2020, and now they must deliver on their promises and lower drug prices now.” 

Recent Polling Confirms Drug Pricing Remains Voters’ Top Concern As Congress Finalizes the Build Back Better Act

Yesterday, Democrats announced a framework for the Build Back Better Act. While the historic agreement will dramatically lower health costs and expand care, it is missing a key plan: giving Medicare the power to negotiate lower prescription drug prices. As Big Pharma and their allies in Congress continue to fight against reform, Democratic leaders are working to ensure meaningful Medicare negotiation is included in the Build Back Better Act. Poll after poll shows that the #1 element of President Biden’s Build Back Better agenda is Medicare negotiation. Failure to include negotiation in Build Back Better means maintaining the broken system that lets drug companies dictate outrageous prices while millions of Americans struggle to afford their medications. 

Giving Medicare the full power to negotiate for lower prices is not just the right thing to do — it’s the smart thing to do. Democrats ran and won on health care in 2018 and 2020. It’s plain and simple: This is not the time to cower to Big Pharma’s demands — Medicare negotiation must remain in the final Build Back Better Act to lower drug prices for all Americans.

RECENT POLLING

Navigator Poll Finds Medicare Price Negotiation As The Best Reason Among Voters To Support Build Back Better. “Independents and economically persuadable Americans say giving Medicare the power to negotiate lower drug prices [is] the best reason to pass the plan.” [Navigator, 10/15/21]

Kaiser Family Foundation Poll Finds Strong Support For Negotiation Across Political Spectrum. “Of those in support: “83% total, 95% of Democrats, 82% of independents, and 71% of Republicans.” [Kaiser Family Foundation, 10/12/21]

• Americans Favor Arguments For Prescription Drug Price Negotiation Than Those Made Against It. “One-third of the public say the argument from those opposed to drug price negotiations is convincing compared to a large majority (84%) who say they found the argument from those in favor convincing.” [Kaiser Family Foundation, 10/12/21]

CBS Poll Finds Overwhelming Support For Build Back Better Health Provisions, With Drug Price Negotiations At The Top. “88 percent of respondents support federal drug price negotiations, with 84 percent in support of expanding Medicare to include dental, vision, and hearing coverage.” [CBS, 10/10/21]

Build Back Together Survey Across 48 Battleground Congressional Districts Finds Allowing Medicare To Negotiate Drug Prices Is The Most Popular Component Of The Build Back Better Plan. “Allowing Medicare to negotiate lower prices was the most popular of the 16 components of the Build Back Better plan tested. Over two-thirds of battleground district voters (71%) say this component makes them more likely to support the reconciliation plan. It is especially popular with seniors, but also the most popular component among both independents and those voters who are persuadable on the reconciliation plan.” [ALG Research, 9/29/21]

Hart Research Poll Finds Hart Medicare Negotiation Was The Most Important Element In Driving Support For The Build Back Better Package. “When making the case for the Build Back Better Act, it’s significantly strengthened by including health care. Support for the investments in critical priorities in the act is strong (74-26%) but is significantly stronger (80-20%) when the description includes that the plan reduces health care costs and the price of prescription drugs.” [Hart Research, 9/13/21] 

NAVIGATOR Polls Finds Economically Persuadable Americans Want Prescription Drug Negotiation. “86 percent of respondents support reducing the cost of prescription drugs by giving Medicare the power to negotiate with pharmaceutical companies for lower prices, with 69 percent of Democrats, 49 of independents, 50 percent of Republicans, and 63 percent of economically persuadable Americans strongly supporting the measure.” [NAVIGATOR, 9/8/21]

Closing the Coverage Gap Is A Result of Tireless Advocacy by Majority Whip Clyburn (D-SC-06) and Senators Warnock (D-GA), Baldwin (D-WI) and Ossoff (D-GA)

Washington, D.C. — Today, Democrats secured a provision to close the Medicaid coverage gap as part of the Build Back Better Act framework. Closing the Medicaid coverage gap will finally extend health insurance to over four million people in the 12 states that have rejected Medicaid expansion and address deep racial inequities in our health care system. In response, Protect Our Care Executive Director Brad Woodhouse released the following statement:

“This historic expansion of health insurance coverage will finally ensure that Americans in states like Georgia, South Carolina, and Wisconsin will be able to access affordable, quality care. Because of Republicans’ partisan war on health care, millions of people have been left uninsured in 12 states — it’s just not right. Thanks to the hard work of Majority Whip James E. Clyburn and Senators Rev. Raphael Warnock, Tammy Baldwin, Jon Ossoff, as well as President Biden and the Democratic leadership, the promise of Medicaid expansion in every state is finally a reality. Medicaid is a lifeline; it reduces racial disparities in health care, creates healthier communities and strengthens economies. The health care measures in Build Back Better will lower costs and improve and expand access to lifesaving care.”