House Speaker Nancy Pelosi, D-Calif., released her plan to lower drug prices Sept. 19, according to The Hill.
The Hill obtained a summary of Ms. Pelosi's plan. Five things to know about the plan:
1. Under the proposed bill, the HHS secretary would annually identify 250 brand-name drugs that do not have generics or biosimilars and that represent the greatest cost to the healthcare system, measured by both cost and volume.
2. He or she would then negotiate the prices of at least 25 drugs each year, up to 250 based on the time and resources available.
3. The proposed bill would tie the upper limit for drug prices to 120 percent of the average price of the drug in Australia, Canada, France, Germany, Japan and the U.K. This price ceiling is based on a Trump administration proposal, according to The Hill.
4. If pharmaceutical companies refuse to negotiate, their gross sales will be taxed at a rate of 65 percent. This rate will increase 10 percentage points each quarter to a maximum of 95 percent.
5. After prices are negotiated, pharmaceutical companies are prohibited from increasing prices faster than inflation until a generic or biosimilar enters the market.
Republicans reportedly did not approve of the proposal, but Ms. Pelosi is optimistic it will gain support from President Donald Trump and Republicans will follow, according to The Hill.
Read more here.
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