New CBO Report: Trump’s Big Ugly Bill Includes $8.8 Billion Handout for Pharmaceutical Companies
Today, Democratic Health Committee leaders released a joint statement following a new report from the independent Congressional Budget Office (CBO) on a provision included in President Trump’s Big Ugly Bill that will drive up prescription drug prices for America’s seniors.
The following statement was released by House Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ), House Ways and Means Committee Ranking Member Richard E. Neal (D-MA), and Senate Finance Committee Ranking Member Ron Wyden (D-OR):
“The details of Trump’s so-called ‘Big Beautiful Bill’ keep getting uglier. A new report from the Congressional Budget Office found a provision hidden away in Trump’s signature bill will give an enormous $8.8 billion sweetheart deal to Big Pharma companies at the expense of seniors.
“While Republicans were drafting the largest health care cut in history, they quietly tucked in language to weaken Medicare’s ability to negotiate lower drug prices for seniors. This is a trojan horse policy that will undermine efforts to lower prescription drug prices for years to come. According to CBO, the provision will give a windfall to pharmaceutical companies by preventing Medicare from negotiating prices for certain drugs, including cancer treatments like Keytruda, Opdivo, and Darzalex that seniors rely on.
“While the Trump Administration touts its sham agreements with drug companies and direct-to-consumer schemes that won’t actually lower costs for anyone, what they’re really doing is opening up a giant loophole in the law that will allow drug companies to keep prices higher for longer, harming patients across the nation.
“Unfortunately, this is yet another example of the Republican health care crisis. As health care premiums double, rural hospitals close, and millions stand to lose coverage we now know drug prices will continue to rise for America’s seniors. Enough is enough. It’s time for Republicans to stop prioritizing corporate profits over the American people and work with Democrats to lower the cost of health care.”
When Medicare Part D was first established in 2003 Republicans included language to prevent the program from negotiating drug prices for seniors. As a result, seniors and taxpayers were forced to pay the prices set by giant pharmaceutical companies for nearly two decades. That came to an end when Democrats gave Medicare the power to negotiate lower prescription drug prices in the Inflation Reduction Act. However, Republicans included language in their Big Ugly Bill to weaken Medicare’s ability to negotiate the price of certain drugs that receive an “orphan drug designation.” CBO’s new report estimates this provision will cost taxpayers $8.8—possibly up to $10.9 billion—over the next decade, which is an increase from their original estimate of $4.9 billion.
CBO’s analysis is available HERE.
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