UPDATED: Biden's vision for drug pricing reforms: Medicare negotiations, penalties for prices rising higher than inflation
President Joe Biden on Thursday revealed key details of what he wants to see reformed in the pharmaceutical industry when it comes to drug prices, calling not only for Medicare negotiations, which seems to be at the forefront of Senate plans, but also penalties for companies that hike prices faster than the rate of inflation.
“Change is sorely needed,” Biden said in a statement. And in comments Thursday afternoon at the White House, he said that the government will negotiate based on the company’s cost of R&D that went into the drug, “and the need for a significant profit but that’s still affordable for consumers.”
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