S.2543: Prescription Drug Pricing Reduction Act of 2019
The Prescription Drug Pricing Reduction Act (S. 2543) would restructure the way Medicare Part D negotiates, administers, and provides perspiration medication, predominantly through four changes. First, the bill would establish a $3,100 out-of-pocket cap on drug spending for Medicare recipients. Second, the bill mandates that brand drug manufacturers pay a 20 percent listed price rebate for drugs purchased by beneficiaries who have reached their out-of-pocket limit. Third, the bill would reduce the amount of federal reinsurance paid to Part D plans for high-cost patients, which increases plan financial responsibility for drug spending above the new cap, strengthening plan incentives to manage utilization and negotiate for lower prices. Fourth, the bill would force drug manufacturers to provide additional rebates for drugs whos price rises faster than inflation.
The Congressional Budget Office estimates that S. 2543 would reduce federal health expenditures by $100 billion over the next decade.
Though this is a Republican-sponsored bill, it passed out of committee with majority Democratic support and only 6 out of the 15 Republicans on the committee voting in favor. Republican Senate leadership has been tepid about bringing the bill for a floor vote and Democrats in the House passed their own, more ambitious prescription drug bill.View Full Overview