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CAPITOL HILL REPORT
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Pelosi using Socialist Controls to “Help” Americans
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During the September session, Speaker Pelosi and House Democrats unveiled their plan to lower prescription drug prices. H.R. 3, or the Lower Drug Costs Now Act, lowers drug prices by forcing the Department of Health and Human Service’s Secretary (HHS) to negotiate prices with pharmaceutical companies for Medicare beneficiaries. This negotiation mimics the steps private insurers often take to lower costs for their beneficiaries and the President already implemented drug pricing reforms in a final rule published by HHS in August 2018.
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 According to the Speaker’s office, some of the highlights of Lower Drug Costs Now Act include: forcing drug companies to use the negotiated drug prices by Medicare when working with private insurers, implementing price controls set at no more than 120% of the average price that six foreign countries pay for the drug, and setting a $2,000 out-of-pocket limit on prescription drug costs for Medicare beneficiaries.
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If the forced participation and price fixing wasn’t enough of an indicator that this is a socialist plan meant to hurt the pharmaceutical industry, then the tax hitting drug companies for not complying surely solidifies the fact. Companies will face a tax starting at 65% of the sales of drug the previous year and increasing as high as 95% for not negotiating or failing to reach an agreement on price.
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As Republican leadership said in a joint statement following H.R. 3’s release:
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"The Pelosi plan is a step toward nationalizing the drug industry and opening the door to a one-size-fits all, government-controlled rationing of prescription drugs. This exacerbates the existing government policies that got us here in the first place while damaging the free market that has created these life changing medications and cures. It also includes an unprecedented 95 percent tax on companies, which will subsequently drive out competition and force drug makers to close their doors. Caught in the aftermath of this socialist economic disaster are those devoting their lives to healing others and those they are trying to heal. Congress can find a bipartisan solution to lower drug prices without taking away choice, access, and control from patients and doctors. We have to.”
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Eagle Forum will continue to fight against the socialization of our medical community that is sure to hurt American families.
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Questions or legislative concerns, please don't hesitate to contact our D.C. Executive Director Kirsten Hasler directly via email at [email protected]Â or phone at 202-445-8531.
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