Pallone: Republicans Gave Big Pharma Loopholes to Avoid Medicare Negotiation
Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) released the following statement today after the Trump Administration released the list of the next 15 prescription drug prices that will be negotiated by Medicare:
“The drugs announced for price negotiation will result in significantly lower costs for seniors. This announcement shows that Medicare Drug Price Negotiation, passed into law by Democrats, is an effective way to lower prescription drug prices.
“However, Republicans’ Big Ugly Bill created a loophole that allows manufacturers of some of the most expensive drugs in the world to avoid negotiating fair prices for seniors. Without this loophole, these drugs would have likely been included on the negotiation list this year. It’s just the latest example of Republicans prioritizing corporate profits over the American people. In Trump’s America, you pay more while the rich get richer.
“Democrats will keep fighting to strengthen Medicare price negotiation, close loopholes, and lower prescription drug prices for all Americans.”
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 that weaken Medicare’s ability to negotiate the price of certain drugs that may be considered an orphan drug. An October 2025 report by the independent Congressional Budget Office (CBO) estimated this provision will cost taxpayers $8.8 billion—possibly up to $10.9 billion—over the next decade. Without this loophole, Keytruda and Opdivo, two costly cancer drugs, would have likely been on the list for negotiation this year.
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