
'Put up or shut up': Biden, Dems have one last chance to resurrect drug pricing reforms ahead of elections
Before Sen. Joe Manchin (D-WV) put the final kibosh on the Build Back Better Act late last year, Democrats had never been so close to passing major drug pricing reforms.
But after that bill died in the Senate, even as Manchin vowed to back such pricing reforms, reaching 50 votes to pass a bill under reconciliation seemed to be stretching out of reach as the congressional summer recess nears and as midterm elections approach.
Now, however, President Joe Biden is signaling an 11th-hour push is coming around drug prices, with plans to not only allow Medicare to negotiate, but to make insulin affordable too. The House in late March passed a bill to cap insulin prices at $35 per month but the Senate has yet to vote on the bill.
“I think we’re going to be able to get a change in Medicare and a reduction in the cost of insulin. Insulin — if you know anybody who has type 2 diabetes or has a child who has it, they need the shots during the week. It could cost them up to 1,000 bucks a week. And it may not cost more than $35 [to make],” Biden said in comments made yesterday near his beach house in Rehoboth, DE.
Alex Lawson, executive director of the nonprofit Social Security Works who’s been working on drug pricing reforms on Capitol Hill, told Endpoints News:
It all has to happen by the August recess. And there is still a real path to getting it done. And everyone keeps saying they want to get it done, but it is absolutely put up or shut up time in terms of lowering drug prices for the Democrats.
Meanwhile, NBC News scooped today that AARP is airing ads this week in West Virginia, giving Manchin cover to continue supporting these major drug pricing reforms.
“We know we have the votes to pass Medicare negotiation through reconciliation, and we are committed to pushing back whenever PhRMA and their allies try to mislead the public and block Congress from lowering prescription drug prices,” Nancy LeaMond, the chief advocacy and engagement officer for AARP, told NBC.
House Dems also called on the Senate late last month to quickly move on a reconciliation bill with these reforms.
Those positive comments follow heated internal battles among Dems over the use of Medicare to negotiate drug prices, which the pharmaceutical industry and its lobbyists have fiercely sought to defeat.
A handful of Senate Dems, like New Jersey’s Bob Menendez, whose state is home to many in the life sciences industry, have been reluctant to come on board with Medicare negotiations as the industry has made clear that it could come at the cost of new drugs. And one lost Dem means any reconciliation bill will fail.
If these battles near the finish line again, many will be looking to the Congressional Budget Office for guidance. The CBO previously estimated the Medicare negotiations could lead to a 10% reduction in the number of new drugs over 30 years, although it did not estimate what types of drugs might hit the cutting room floor.
Regardless, it’s now or never for Biden and Democrats as some who are handicapping this fall’s election see the 50-50 Senate shifting to Republican control, which likely spells the end for Medicare negotiations.