Lower Drug Costs Now Act (H.R. 3)

House Introduces Comprehensive Legislation to Lower Drug Prices

by Robert Roach, Jr.

Recently, House Speaker Nancy Pelosi and Democratic leaders released legislation to lower prescription drug costs. The bill, called the “Lower Drug Costs Now Act” (H.R. 3), requires the federal government to negotiate lower prices and administer stiff tax penalties on pharmaceutical corporations that refuse to negotiate.

The plan authorizes the Secretary of Health and Human Services to negotiate on behalf of the American people. Each year the secretary can negotiate for up to 250 of the most expensive drugs available through Medicare, including insulin. The prices agreed upon would be available for all insurers -- not just Medicare.

The plan caps out of pocket prescription drug costs for Medicare beneficiaries at $2,000 and limits price increases to the rate of inflation for Medicare Parts B and Part D. Currently, there is no cap.

Americans now pay the highest prices for prescription drugs in the world, and this bill will bring U.S. prices more in line with those in other industrialized countries. The House and Senate need to pass this bill and rein in the predatory practices of pharmaceutical corporations. 

Allowing Medicare to negotiate prices and capping out of pocket costs will finally provide relief to retirees and others who struggle to afford their medicine.

H.R. 3 will be a giant leap forward if passed by Congress. However, powerful pharmaceutical corporations are fighting it tooth and nail. Lawmakers need to know that their constituents want it passed quickly.

Robert Roach, Jr. is president of the Alliance for Retired Americans.  He was previously General Secretary‐Treasurer of the IAMAW.  For more information, visit www.retiredamericans.org.