CCAGW Annual Ratings

Drug Price Negotiation – Passage


Passage of the bill, as amended, that would allow the Health and Human Services Department to negotiate prices for certain drugs under Medicare programs and would make a number of modifications to Medicare programs related to drug costs and plan benefits. Specifically, the bill would establish a fair price negotiation program in which HHS would enter into agreements with drug manufacturers negotiate maximum fair prices for certain drugs. It would allow the department to negotiate a "maximum fair price" for insulin and up to 250 other Medicare-eligible, brand-name drugs that do not have generic competition, including 125 drugs that account for the greatest national spending and 125 drugs that account for the greatest spending under Medicare parts C and D. The bill would require the department to negotiate the maximum price of at least 25 drugs for 2023 and at least 50 drugs in each subsequent year. It would require that such maximum prices would not exceed 120% of a drug's average international price or 85% of the average manufacturer price for drugs for a year. The bill would subject drug manufacturers who do not reach a negotiated agreement for a drug to excise taxes based on gross sales of that drug. It would require manufacturers to offer negotiated prices to private health insurers. The bill would also make adjustments to payments, pricing structures, and programs related to Medicare parts B and D. Among other provisions, it would place a $2,000 annual out-of-pocket cap on costs for Medicare Part D beneficiaries, expand eligibility for a Part D low-income subsidy program, and add comprehensive vision, dental, and hearing coverage under Medicare Part B. Finally, it would authorize funding for HHS programs to address opioid and substance use disorders and authorize funding for National Institutes of Health and Food and Drug Administration activities related to the development of new drugs and medical treatments.

Vote Number: 
House Vote 682
Bill Number: 
HR 3
CCAGW Position: 
Vote Results: 
Passed 230-192 : D 228-0; R 2-191; I 0-1