Nevada Democrats reintroduce bill to combat rising prescription costs

From left, Congressman Steven Horsford (D-NV 4th District) and U.S. Senator Catherine Cortez Masto (D-NV) attend a press conference to discuss support for clean energy initiatives at NV Energy Tuesday, May 31, 2022. Photo by: Wade Vandervort

U.S. Sen. Catherine Cortez Masto and U.S. Rep. Steven Horsford, both Democrats from Nevada, are reintroducing legislation aimed at reducing prescription drug costs, expanding upon reforms that President Donald Trump is seeking to roll back.

The Lower Drug Costs for Families Act builds on the Inflation Reduction Act signed by former President Joe Biden, which required pharmaceutical companies to provide rebates to Medicare when drug prices rise faster than inflation. 

This new bill would extend similar protections to Americans with private health insurance, applying the same inflation-based rebate requirements to prescription medications in the commercial market.  

More than 4,200 drug products saw a manufacturer list price increase between 2022 to 2023, with 46% of those price increases higher than the general rate of inflation, according to a report from the Office of Health Policy under U.S. Health and Human Services (HHS).

“It’s time to hold Big Pharma accountable for raising costs on the American people,” Cortez Masto said in a statement. “No one – no matter what health insurance they use – should ever face these ridiculous price hikes again.”

Cortez Masto’s legislation stalled in committee during the last session. The House companion bill — introduced by Rep. Ruben Gallego, D-Ariz. and cosponsored by Horsford — similarly failed to reach a floor vote.

Cortez Masto is renewing the push with continued support from colleagues in the U.S., including previous cosponsor Sen. Amy Klobuchar, D-Minn. Horsford is introducing a companion bill in the House.

The legislation directs penalties collected from excessive drug price increases to the Medicare Supplementary Medical Insurance Trust Fund — one of two funds financing the Medicare program. This trust supports Medicare’s administrative operations, including resources dedicated to combating fraud and abuse, according to the program’s official website.

Trump issued an executive order rescinding President Biden’s directive that had instructed the Center for Medicare and Medicaid Innovation to develop payment models aimed at reducing prescription drug costs.

His disapproval is less apparent when it comes to the legislation’s provisions regarding prescription drugs, with the Centers for Medicare and Medicaid Services identifying lowering prescription drug costs as a “top priority” for the administration. Just three days before Trump took office, CMS released a list of 15 medications selected for the second cycle of the Medicare Drug Price Negotiation Program established by the IRA.

“As the second cycle begins under the Trump Administration, CMS is committed to incorporating lessons learned from the program and to considering opportunities to bring greater transparency to the Negotiation Program,” the agency stated following Trump’s return to office.

Cortez Masto’s proposed bill comes as HHS announced Thursday the agency will see a “dramatic restructuring” under HHS Secretary Robert F. Kennedy Jr. It plans to terminate around 10,000 full-time employees.