December 11, 2019
Comparing the Current Drug-Pricing Reform Proposals in Congress
Members of both the Senate and the House of Representatives have been actively crafting policy packages seeking to bring down the cost of prescription drugs, and the House will consider Speaker Pelosi’s bill this week. AAF’s Deputy Director of Health Care Policy Tara O’Neill Hayes has assembled a section-by-section comparison of the four primary proposals currently circulating in Congress, along with highlights of the most notable reforms.
The most significant Medicare Part D provisions are those that would reform the benefit structure, similar to the proposal first put forward by AAF in 2018….While each of the proposals sets slightly different parameters (which will result in substantial differences in the impact, particularly to the pharmaceutical industry), the various proposals are now more similar to each other than when originally introduced. The most significant change was a tweak to the Senate Finance bill which now would require drug manufacturers to cover a share of the costs in the initial coverage phase (7 percent) in addition to their liability in the catastrophic phase (now set at 14 percent). H.R. 3 would require manufacturers to cover 10 percent of costs in the initial coverage phase and 30 percent in catastrophic, while H.R. 19 would require a 10 percent manufacturer liability in both phases.