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Washington, DC – Today, Rep. Ruben Gallego (AZ-03) and Rep. Elissa Slotkin (MI-07) introduced the Lower Drug Costs for Families Act. The bill would hold Big Pharma accountable for price gouging by requiring drug companies to pay a penalty if they raise prices faster than inflation.
“For years, Arizonans have been struggling to afford prescription drug prices that have skyrocketed far above inflation,” said Rep. Gallego. “With the historic Inflation Reduction Act, we were able to put an end to drug price gouging for seniors. Now, it’s time to expand those protections to all Arizonans. That’s exactly what my bill does.”
“Last summer, we finally passed historic legislation to lower the cost of prescription drugs, but the job isn’t finished and this bill builds on that foundation,” said Rep. Slotkin. “The Lower Drug Costs for Families Act will expand prescription drug provisions beyond just Medicare enrollees, so working families can benefit from lower costs too. It will keep big pharma in check by penalizing them when they needlessly jack up their prices, so they can no longer gouge Americans who rely on their medications to live.”
Rep. Gallego previewed the legislation at a roundtable over the weekend with local labor leaders and advocates. Participants at the event, including leadership from the AFL-CIO and Arizona Alliance of Retired Americans, discuss how they are facing increased costs in their medications that far outpace pay raises and cost of living adjustments.
Read More: 'Despair and extreme anger': At roundtable, Rep. Ruben Gallego hears impact of high drug costs (Arizona Republic)
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Under the Inflation Reduction Act (IRA), the federal government can only limit drug price increases faster than the rate of inflation for drugs purchased and used by people with Medicare. The Lower Drug Costs for Families Act would expand this to include drugs purchased and used by people with private health insurance. The bill would use collected penalties to secure the Medicare Trust Fund and would save the federal government $34 billion over the next 10 years.
“Seniors in Medicare will save hundreds of dollars at the pharmacy counter every day under President Biden’s policy to cap drug prices. Rep. Gallego’s bill will extend the inflation cap to include everyone with private insurance, resulting in $42 billion in lower copays and premiums for consumers. The Congressman is taking on big pharma to win savings for everyone who gets insurance through their job, a marketplace, or on their own,” said Bill Samuel, AFL-CIO Director of Government Affairs.
Companion legislation was introduced in the Senate by Sen. Catherine Cortez Masto (D-NV) in March.
“It’s outrageous that year over year, Big Pharma continues to raise prescription drug prices on Nevadans, and it’s time we put a stop to it,” said Sen. Cortez Masto. “After passing historic legislation to lower drug prices for seniors, we need to finish the job by penalizing these companies for unjustified price hikes that affect families across the country.”
Earlier this month, Rep. Gallego slammed drug company Merck for its lawsuit to block Medicare drug price negotiations. In April, he visited Valle del Sol to highlight the IRA’s $35 per month cap on insulin for Medicare patients.
The Lower Drug Costs for Families Act has been endorsed by Patients for Affordable Drugs Now, AFL-CIO, American Federation of State, County and Municipal Employees (AFSCME), UNITE HERE, United Mine Workers of America, Communications Workers of America (CWA), and the American Federation of Teachers.
Full text of the legislation can be found here.
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