Speaker Nancy Pelosi (D-Calif.) is expected to soon release her long-awaited drug pricing proposal. According to news reports, the plan is expected to require the Department of Health and Human Services (HHS) to directly “negotiate” with pharmaceutical manufacturers for an “acceptable” price for at least 25 drugs that would apply to the entire U.S. market. If no agreement can be reached, the Government Accountability Office would act as an arbitrator and oversee a dispute resolution.
To date, there has been no list of drugs that would fall under this rubric. Pharmaceutical companies that do not participate in the process would be charged a 50 percent excise tax on prior sales of each drug being negotiated. Drugs outside of the 25 not being negotiated would face similar fines if their prices go above a certain threshold, likely in an effort to prevent cost shifting.
