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A4 U.S. NEWS
Wednesday 24 July 2019

GOP, Dems offer compromise

to reduce drug costs for seniors

By RICARDO ALONSO- serving seniors and low-in- would have ripple effects,
ZALDIVAR come people. leading to prescription
Associated Press Iowa Republican Chuck drug savings for private in-
WASHINGTON (AP) — Two Grassley and Oregon surance plans sponsored
veteran senators — a Re- Democrat Ron Wyden said by employers or purchased
publican and a Democrat the bill would for the first directly by consumers.
— unveiled compromise time limit drug copays for The senators announced
legislation Tuesday to re- people with Medicare’s a Thursday vote on the
duce prescription drug “Part D” prescription plan package by the Finance
costs for millions of Medi- , by capping patients’ out- Committee, which over-
care recipients, while sav- of-pocket costs at $3,100 sees Medicare and Medic-
In this June 15, 2018 photo, pharmaceuticals are seen in North ing money for federal and a year starting in 2022. aid. Grassley is the panel’s
Andover, Mass. state health care programs They’re hoping to have it chairman, while Wyden
Associated Press ready soon for votes on the serves as the senior Demo-

Senate floor. crat.
The legislation would also “Pharmaceutical com-
require drugmakers to pay panies play a vital role in
a price-hike penalty to creating new and innova-
Medicare if the cost of their tive medicines that save
medications goes up faster and improve the qual-
than inflation. Drugs pur- ity of millions of American
chased through a pharma- lives, but that doesn’t help
cy as well as those admin- Americans who can’t af-
istered in doctors’ offices ford them,” Grassley and
would be covered by the Wyden said in a joint state-
new inflation rebates. ment. “This legislation
Political compromises over shows that no industry is
health care are rare these above accountability.”
days. The White House encour-
The bill reflects efforts by aged the Senate negotia-
lawmakers of both par- tions, and spokesman Judd
ties to move beyond the Deere said the Trump ad-
rancorous debates over ministration stands ready
the Obama-era Afford- to “work with senators to
able Care Act and focus ensure this proposal moves
on ways to lower costs for forward and advances the
people with health insur- president’s priority of lower-
ance. Separate legisla- ing drug prices.”
tion to address “surprise Democrats controlling the
medical bills” has already House want to go farther
cleared the Senate Health, by granting Medicare legal
Education, Labor and Pen- authority to directly negoti-
sions committee. ate prices with pharma-
The senators said prelimi- ceutical companies. Direct
nary estimates from the negotiations are seen as a
Congressional Budget Of- nonstarter in the Republi-
fice show that the Medi- can-controlled Senate, but
care program would save the bill’s drug price inflation
$85 billion over 10 years, penalty may yet find sup-
while seniors would save port among Democrats in
$27 billion in out-of-pocket the House.
costs over the same period, Grassley’s office said the
and $5 billion from slightly bill will force drugmakers
lower premiums. and insurers to take greater
The government would responsibility for keeping
save $15 billion from pro- Medicare prescription pric-
jected Medicaid costs. es in line, instead of foist-
CBO also projected that ing increases on taxpayers
Medicare’s inflation rebate and beneficiaries.q