Meadows Introduces the State-Based, Market-Oriented Prescription Drug Negotiations Act

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WASHINGTON, April 4, 2019 | Ben Williamson (202-225-6401) | comments

RELEASE:
Meadows Introduces the State-Based, Market-Oriented Prescription Drug Negotiations Act

Washington, D.C. – This week, Rep. Mark Meadows (R-NC) introduced H.R. 2038, the State-Based, Market-Oriented Prescription Drug Negotiations Act.

As prescription drug spending rises to nearly 20 percent of health care costs, the cost of potentially life-saving prescription drugs continues to rise, putting Americans at risk of being priced out of the market. Competitive negotiations are needed to involve more players in the market and lower drug prices for consumers. H.R. 2038 seeks to address this need for competition by allowing insurers to jointly negotiate prices of prescription drugs purchased from drug manufacturers. The bill draws on Switzerland’s framework to create a safe harbor from antitrust liability for private health insurers, so they can jointly negotiate with drug manufacturers. The added element of competition will effectively create more choices for consumers, thereby lowering costs for consumers.

The bill will also limit further consolidation in the healthcare market, balancing out the power of the pharmaceutical industry.

Rep. Meadows released the following statement on the bill:

“With the rapid increase in prescription drug spending, it’s critical that we take meaningful steps to lower out-of-pocket costs of prescription drugs and improve access for patients. Increasing competition and choice in the marketplace, as this bill does, will be an effective path forward for achieving those goals. If we allow insurers to jointly negotiate prices of prescription drugs purchased from drug manufacturers, we can foster the kind of competitive economic environment in the prescription drug industry that will allow for lower prices that is ultimately more beneficial for patients and consumers. The age-old principle remains: consumer choice—not top-down government price controls—is the key to giving Americans more access to lower cost, life-saving prescription drugs.”

You can read more about the bill here.

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