Baldwin Introduces Legislation to Lower Drug Costs and Hold Big Pharma Accountable for Price Hikes
Bill would punish drug companies for raising prescription drug prices in the commercial market faster than the rate of inflation
WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) joined her colleagues Senators Catherine Cortez Masto (D-NV) and Amy Klobuchar (D-MN) in introducing the Lower Drug Costs for Families Act to make prescription drugs more affordable, hold Big Pharma accountable, and reduce the national deficit by billions of dollars. The bill would do so by punishing drug companies for raising prescription drug prices in the commercial market faster than the rate of inflation, including those on private health insurance and employer-sponsored health plans. The legislation builds on the Baldwin-backed Inflation Reduction Act’s work to lower health costs for seniors with Medicare by protecting Wisconsinites from outrageous increases in prescription drug prices.
“Everywhere I go in Wisconsin, I hear from families who need relief from the skyrocketing cost of prescription drugs. Too often big corporations can jack up drug prices on a whim, leaving Wisconsinites stuck between paying through the nose or forgoing their medication while big pharmaceutical companies get richer,” said Senator Baldwin. “This legislation will build on our work to lower costs for Wisconsin families and protect all Americans from big drug companies’ outrageous price hikes.”
Under current law, drug companies only have to pay back money if they raise their prices faster than inflation on drugs covered by Medicare. The Lower Drug Costs for Families Act would expand this successful program by:
- Counting the number of drugs sold to people with private insurance when calculating penalties owed to Medicare for drug price hikes, effectively ensuring that Big Pharma faces consequences for overcharging more than 180 million Americans and
- Extending Medicare solvency by returning collected fines directly to the Medicare Supplementary Medical Insurance Trust Fund.
This legislation has been endorsed by the AFL-CIO, the American Federation of Teachers, Patients for Affordable Drugs Now, and the United Mine Workers of America.
Full text of the legislation is available here.
###