Medicare would be able to directly negotiate prices on 250 drugs under a bill proposed by House Speaker Nancy Pelosi, according to The Washington Post.
The proposed bill, which could be released as early as this week, would lift a ban preventing the federal government from directly negotiating drug prices on behalf of Medicare and other consumers.
Although the plan wouldn't allow Medicare to negotiate prices on all drugs, it would allow for the HHS secretary to negotiate 250 of the most expensive brand-name drugs, as long as they don't have at least two competitors. This would include some insulins, cancer treatments and specialty drugs.
The bill also proposes imposing severe penalties on drugmakers that refuse to participate in negotiations or reach an agreement with the government.
The legislation would also establish an international pricing index to ensure U.S. consumers are paying the same drug prices as those in other countries, where prices are often lower.
Another element of the bill is an inflation rebate. Under the proposed bill, drugmakers would have to pay the U.S. Treasury money if they raise prices above the rate of inflation for the more than 8,000 drugs covered under Medicare Part B, which covers hospital-administered drugs and Part D, which covers prescription drugs.
The bill is expected to face fierce industry opposition.