Senate Parliamentarian Axes Commercial Inflation Caps, But Allows Medicare Negotiation

By Gabrielle Wanneh / August 6, 2022 at 4:56 PM
The Senate Parliamentarian has given the green light to Democrats’ long-sought plan for Medicare to negotiate drug prices, but she axed reconciliation language that would have required drug companies pay Medicare back when they raise prices for drugs sold in the private market faster than inflation. The decision is a major blow to employer plans and could take a $40 billion chunk out of the package’s $288 billion in drug savings based on unofficial estimates , though the final impact...

Not a subscriber? Sign up for 30 days free access to exclusive, detailed reporting on drug pricing reforms, Medicaid policy, FDA news and much more.