Landmark Drug Pricing Reform Bill Passes Congress House

The U.S. House of Representatives voted 220-207 to pass new, wide-ranging legislation allowing Medicare drug price negotiations for the first time and capping seniors’ drug expenses to $2,000 per year and seniors’ insulin costs at $35 per month.
The bill passed the U.S. Senate 51-50, with Vice President Kamala Harris breaking the tie. President Joe Biden has said he would sign the legislation.
Beginning in 2025, price concessions will kick off for ten drugs in PART D with the highest program spending on the market for nine or 13 years and lack generic competition.
Wall Street Journal writes that the legislation would raise an estimated $739 billion in revenue and spend $433 billion on climate and energy programs and health insurance subsidies for people covered under the Affordable Care Act. President Biden is expected to sign the bill soon.
The legislation also allows for direct-price negotiations on a limited number of medications and puts a cap on the amount that seniors on Medicare pay for medicines annually.
In 2028, Medicare will start negotiating prices for high-spending drugs in the Part B program, which covers outpatient medical care such as drugs that healthcare professionals administer.