A newly-released, nonpartisan analysis from the Congressional Budget Office and the CMS Office of the Actuary on House Democrats’ landmark legislation to lower prescription drug costs for Americans (H.R. 3), shows it will reduce negotiated drug prices by as much as 55% – saving patients an estimated $158 billion over the next few years.
According to the CBO and CMS Actuary analysis, H.R. 3 will:
- Reduce U.S. prices for negotiated drugs by 40-55% on average (CBO).
- Decrease deficits by $345 billion over the next seven years (CBO).
- Save patients an estimated $158 billion over the next seven years (Office of the Actuary).
Key quotes from CBO analysis of H.R. 3:
- “…lower prices would increase use of drugs and improve people’s health.”
- “Additional effects to include lower premiums in the commercial market and a corresponding increase in federal revenues.” [CBO letter, 10/11/19]
The Hill: CBO: Pelosi bill to lower drug prices saves Medicare $345 billion. “In addition, an analysis of the bill from the federal Centers for Medicare and Medicaid Services’ actuary found that the bill would save American households $158 billion over 10 years through lower premiums and out of pocket spending on drugs, and that total U.S. spending on health care would decline by $480 billion under the bill.” [The Hill, 10/11/19]
CNBC: “The CBO said the largest savings would come from the provision that allows Medicare to negotiate lower prices on as many as 250 of the most expensive drugs per year and apply those discounts to private health plans across the U.S. The legislation includes a penalty on pharmaceutical companies that refuse to negotiate or fail to reach an agreement with the U.S. government, starting at 65% of the gross sales of the drug in question.” [CNBC, 10/14/19]
STAT News: Congressional Budget Office says Pelosi drug pricing bill could save $345 billion. “A controversial prescription drug pricing bill championed by House Speaker Nancy Pelosi (D-Calif.) would reduce federal spending on Medicare Part D by $345 billion between 2023 and 2029, mostly thanks to a provision that ties prices to what some other countries pay for medicines, according to an analysis released late last week by the Congressional Budget Office.” [STAT News, 10/14/19]