Congressman Pallone Reintroduces Drug Price Negotiation Bill

LONG BRANCH-Congressman Frank Pallone, Jr. (D-NJ) reintroduced a bill on Tuesday that would give the federal government the ability to negotiate with pharmaceutical companies about the prices of prescription drugs.

The Elijah E. Cummings Lower Drug Costs Now Act would let the federal government negotiate the cost of prescription drugs and cap seniors’ out-of-pocket costs for prescription drugs at $2,000 per year.

“Americans pay more for prescription drugs than any other country in the world, and as a result, too many New Jerseyans do not take their medications because of high costs,” Pallone said in a press release.

“This legislation will dramatically rein in costs by finally empowering the federal government to negotiate fair prescription drug prices with Big Pharma.”

In 2019, the Congressional Budget Office (CBO) estimated that the price negotiation provisions in the bill would save the federal government about $456 billion over 10 years and would lead to $42 billion in Medicare due to better health outcomes for patients that can now afford lower-cost drugs.

“It will also decrease consumers’ out-of-pocket costs, and reduce Medicare and private health insurance premiums,” Pallone said. “This historic legislation finally levels the playing field, and I look forward to working with the Biden Administration to pass it into law.”