WASHINGTON – Democratic plan to cut prescription drug prices as part of the party’s $ 3.5 trillion social policy package failed Wednesday in a House committee after moderates refused to support it , highlighting the internal divisions that could complicate the path of legislation towards enactment.
Three Democrats: Representatives Scott Peters of California, Kurt Schrader of Oregon and Kathleen Rice of New York, joined Republicans on the House Energy and Commerce Committee to vote against the drug proposal, in which the pharmaceutical industry strongly opposes. His opposition resulted in a draw that prevented the plan from advancing outside that panel.
An identical provision was later authorized by the House Means and Means Committee, which also has jurisdiction over the drug pricing measure, a crucial source of revenue to fund the powerful bill.
But the defeat reflected the numerous disputes among Democrats that threaten to derail or narrow their domestic policy plan. And he illustrated the challenges facing California President Nancy Pelosi and other party leaders in uniting their meager majors around legislation that represents President Biden’s best chances of getting key parts of the your agenda.
“The president agrees with President Pelosi that in order to build an economy that offers the middle class and working families, not just the people at the top, it’s critical that we get Medicare to directly negotiate lower drug prices.” said Andrew Bates, a White House spokesman.
The setback came on a day when Mr. Biden met separately with two Democratic delays in the social policy package, Sen. Joe Manchin III of West Virginia and Sen. Kyrsten Sinema of Arizona, who have both rejected the price of the legislation.
Unity in the measure, dubbed the “Best Reconstruction Act,” is crucial as Republicans unanimously oppose it. Democrats plan to push the plan under a special budget process known as reconciliation, which protects it from an obstacle and allows it to convey the simple majority. But given their meager majorities, Democrats can’t afford a 50-50 Senate defection and can save up to three votes in the House.
The committee’s work was formally concluded in the House on Wednesday, as the Forms and Means Committee held a final round of voting before advancing the provision of prescription drugs, a series of tax increases on people and rich businesses and a tax cut for families. Only one Democrat, Florida Rep. Stephanie Murphy, joined Republicans to vote against the measure.
“I remain optimistic that the full reconciliation package will be properly targeted and fiscally responsible, paid for by tax provisions that promote equity but do not harm working families,” Ms. Murphy in a statement after the vote. “Every moment we spend debating provisions that will never become law is a lost moment and one that will delay the necessary assistance for the American people.”
The final step is far from guaranteed. Democrats in both chambers need to reconcile competitive plans to fund the package and divisions on how to structure key components, most likely before legislation reaches the chamber. Additional provisions may be added, including the encouragement of some legislators to address the limit on the deduction of state and local taxes.
Ms. Pelosi has pledged to resolve differences with the Senate before holding a vote on the floor and drug supply remains one of the most thorny issues leaders need to resolve. While the vote on the Forms and Means Committee kept it in the package for now, the shortcomings of the Energy and Trade panel indicated that it is likely to need to change for the whole law to become law.
“There is no excuse for not all Democrats to support it,” Vermont Independent Sen. Bernie Sanders, who is chairman of the Budget Committee, said in a statement. “Now is the time for Congress to show courage and defend the greed of the pharmaceutical industry. The American people will not accept surrender. “
Drug pricing is one of the top political priorities for Congress and White House leaders. High drug prices are a major problem for the consumer and a concern of voters. All three parties voted for almost identical legislation when it passed the House in 2019.
“Polls consistently show immense bipartisan support for Democrat legislation on drug price negotiation,” Henry Connelly, a spokeswoman for Ms. Pelosi, said in a statement after the vote. “Delivering lower drug costs is one of the top priorities of the American people and will continue to be a cornerstone of the Build Back Better Act as long as work continues between the House, Senate and White House on the bill. final law “.
During Wednesday’s hearing, Rep. Frank Pallone Jr. of New Jersey urged his colleagues to vote to advance the bill, promising “that your voices will be heard either with a seat at the table or through me.”
The moderates did not move, although they abstained from forcing a vote on their own alternative drug prices. Schrader said he hoped “this is really the beginning of a conversation about drug pricing policy that can be legally signed.”
The House provision would set aggressive price limits for certain prescription drugs, linking the government price for drugs to those paid in other countries. The Congressional Budget Office estimated that the policy would result in prices for certain drugs falling by more than half. Under the legislation, this lower cost would be made available to other drug buyers in the country, while also reducing the prices of health plans for employers and individuals. An estimate of similar legislation in 2019 showed it would save the federal government more than $ 450 billion in a decade.
The pharmaceutical industry is strongly opposed to these policies, which could substantially reduce its revenue. A few hours before the vote, PhRMA, the industry’s trade group, announced a seven-figure advertising purchase designed to circumvent price regulation. A large group of industry executives also issued an open letter opposing the bill. It appeared Wednesday as a paid ad for The Washington Post, Politico and The Hill.
“These concerns have been known for months, but have been ignored by House leaders,” said Debra DeShong, the group’s executive vice president for public affairs. “This should be a strong signal to the House leadership that there is broad support to reduce patient costs without sacrificing access to new care and treatment.”
In the Senate, more divisions are taking place over the social policy bill. Mrs. Movies arrived at the White House Wednesday morning to meet with Mr. Biden on his concerns about emerging legislation, while Manchin attended a separate meeting later in the day.
“Today’s meeting has been productive and Kyrsten continues to work in good faith with his colleagues and President Biden as this legislation is developed,” said John LaBombard, a spokeswoman for Ms. Cinema, in a statement.