In this June 15, 2018 photo, pharmaceuticals are seen in North Andover, Mass. A prescription drug compromise that would lower costs for Medicare recipients has cleared a key hurdle in the Senate, but Republican resistance signals trouble when the legislation goes to the floor. (AP Photo/Elise Amendola, File)

Drug cost bill advances but GOP resistance spells trouble

July 25, 2019 - 8:15 pm


The Finance Committee voted 19-9 to advance the bill, but it passed because of unanimous support from the panel's Democratic minority, while a majority of Republicans opposed it.



The legislation reflects a compromise between Finance Chairman Chuck Grassley, R-Iowa, and the panel's senior Democrat, Ron Wyden of Oregon. The powerful pharmaceutical lobby is opposed, and executives met Wednesday night with President Donald Trump to air their concerns. There were no signs Thursday that Trump's position had shifted. "The White House applauds the Senate Finance Committee for passing this important piece of legislation," said spokesman Judd Deere.


The Congressional Budget Office told senators that its experts don't consider the bill's inflation penalties to be a form of price controls, but an incentive for manufacturers to exercise restraint in pricing.

Wyden called it a "price hike penalty" that protects taxpayers who subsidize the cost of Medicare's prescription plan. "The cap does not set prices, it limits subsidies," he said.

But opponents said they weren't dropping their efforts.

Also defeated was an amendment by Sen. Debbie Stabenow, D-Mich., that would have accomplished a long-sought goal of her party by authorizing Medicare to directly negotiate prices with drugmakers. That's a nonstarter for market-oriented Republicans, although Trump as a candidate had embraced it.


"This is a bipartisan bill and you get nothing done in the United States Senate without bipartisanship," said Grassley.

He's also reminding Republicans that his legislation has Trump's support and that the president once had backed Medicare negotiating authority. Grassley raised the specter that Trump could revert to that position and cut a deal with Democrats if Senate Republicans try to block his drive to lower drug costs.



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