The drug price plan faces resistance from Democrats, underscoring party dilemma

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Democratic Representatives Scott Peters of California, Kurt Schrader of Oregon and Kathleen Rice of New York voted against a proposal to allow Medicare to negotiate lower drug prices during a reduction in the House Commerce and Energy Committee. With three “no” votes, the drug pricing section of the largest package the group was considering reached an even vote and, as a result, failed, foreshadowing the problems ahead of the Democratic leadership, which it can only be allowed to lose three democratic votes when the measure is taken to the floor of the chamber.

But the setback of the Energy and Trade Committee does not mean the end of the provision line, as a similar proposal passed on Wednesday to the Forms and Means Committee, meaning the measure may still reach the final version of the provision. invoice.

Democrats have estimated that the provision of drug prices would increase by about $ 700 billion, which they need to cover the cost of their $ 3.5 trillion proposal. Without the provision, Democrats would have a significant funding gap, especially because some in the Senate have argued that they want the plan to be paid for in full.

While the Forms and Means Committee’s marking also Wednesday, moderate Democratic Rep. Stephanie Murphy of Florida voted against the entire package, which included the proposal to allow Medicare to negotiate drug costs.

In a statement after the vote, Murphy, who has been part of a group of moderates to continue expressing concerns about the huge economic spending package, said there are “provisions on spending and taxes that give me pause and, therefore, I cannot vote on the bill at this early stage. ”

Murphy, however, did not indicate how he would vote on the overall package, saying he remains “optimistic” that the final product “will be properly targeted and fiscally responsible.”

While the supply of the price of drugs may become the final version of the bill, the moderates ’retreat on the issue makes clear how difficult it will be for Democrats to stay united and pass final legislation. Senate Democrats, who control only 50 seats, will have to be fully on track to pass legislation.

White House spokesman Andrew Bates said in a statement on Wednesday that “the president agrees with President Pelosi that in order to build an economy that offers the middle class and working families, no only to the people at the top, it is critical Medicare will negotiate directly for lower drug prices. “

As a sign of tensions over what should be included in the massive economic package, Vermont Senator Bernie Sanders, an independent arguing with Democrats, criticized the Democrats’ trio vote on the Energy and Commerce Committee, saying in a statement that was “Very disappointed.”

“I understand that the pharmaceutical industry owns the Republican party and that no Republican voted on this bill, but there is no excuse for not all Democrats to support it,” said Sanders, chairman of the House Budget Committee. Senate.

This is a measure that requires the Secretary of Health and Human Services to negotiate fair maximum prices of at least 50 and up to 250 high-cost drugs without competition, including insulin. The price would be available to Medicare beneficiaries and to people enrolled in group health plans. A report from the Congressional Budget Office has said it could save the federal government $ 456 billion in a decade.

The House passed a similar bill, also backed by Pelosi, in 2019 by a vote of 230-192. At the time, the speaker had difficulty blocking the support of progressives, who complained that the bill was not aggressive enough.

Democrats have long been pushing for lower drug costs by allowing Medicare to negotiate prices, although some of its fellow Democrats, as well as GOP lawmakers and the pharmaceutical industry, have opposed it. High drug prices are often among the top U.S. health care complaints.

The drug pricing proposal would also require manufacturers who raise prices faster than inflation to return the excess to the federal government, which would benefit Medicare enrollees and employer-sponsored plans. And it would add a cap on out-of-pocket costs to Medicare drug plans for the first time. Beneficiaries would not pay more than $ 2,000.

An additional saving would come from blocking the implementation of a Trump administration regulation that required changing the rebate system within the pharmaceutical industry.

Peters and Schrader, saying they would vote against the provision, put forward an alternative proposal that they say would further reduce the costs of pocket drugs.

The couple’s proposal aims to reduce drug prices through negotiation, but under a narrower set of parameters. It would allow Medicare to negotiate administered drugs in medical offices that are no longer exclusive and for which there is no competition in the market. The HHS secretary could negotiate for price concessions of between 25% and 35%.

CNN’s Lauren Fox contributed to this story.

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