The prescription drug bill released yesterday by House Speaker Nancy Pelosi is “an unprecedented exercise of raw government power,” according to Galen Senior Fellow Doug Badger.
The bill would require pharmaceutical companies to “negotiate” prices with the federal government for up to 250 drugs that don't have generic or biosimilar competition. If they refuse to comply with the government-set rates, they could face a 95% penalty tax on gross sales of each drug—a new tax that would flow to federal coffers and not to reducing drug prices for seniors. The companies would be required to offer the “negotiated” rates to commercial plans.
