There is consensus in a divided political climate in Washington that something must be done to address the rising cost of prescription drugs.
In September of this year, House Speaker Nancy Pelosi announced legislation to address spending on prescription drugs by Medicare and its beneficiaries. This legislation included limiting what Americans pay for some drugs to 120% of international prices, similar to a plan that President Donald Trump has advocated.
Stacie Dusetzina, PhD, Ingram Associate Professor of Cancer Research at Vanderbilt University Medical Center and Jonathan Oberlander, PhD, a Professor and political scientist at UNC Chapel Hill, explain the details of the legislation in a New England Journal of Medicine perspective, published Nov. 27.
The key provisions of the bill target the prices paid to drug manufacturers and reforms Medicare with the goal of reducing spending by the federal government and out-of-pocket costs for beneficiaries. The bill would establish a negotiation process for a select number of drugs and limit price increases based on inflation.
The bill has important overlap with a recent drug pricing bill introduced in the Senate, though it is unclear if there will be enough political momentum to advance these efforts.
To read the full article in NEJM, click here.
