Drug-cost bill advances, but Senate approval uncertain

WASHINGTON — A prescription drug compromise that would lower costs for Medicare recipients and save billions for Medicare and Medicaid cleared a key hurdle in the Senate on Thursday, but Republican resistance signaled trouble as the legislation faces floor consideration.

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 bill would put a dollar limit on outof-pocket payments confronting seniors who have high medication costs, while also requiring drug companies to pay rebates to Medicare if they raise prices faster than inflation. Those inflation rebates are a problem for some Republican senators, who see them as a path to government price controls.

The legislation reflects a compromise between Finance Chairman Chuck Grassley, R-iowa, and the panel’s senior Democrat, Ron Wyden of Oregon. The White House had earlier publicly supported the bill, and there was no sign on Thursday that Trump’s position had shifted.

Ohio’s two senators, Republican Rob Portman and Democrat Sherrod Brown, both voted to advance the legislation.

“It helps lower outof-pocket costs for our seniors, cracks down on the high prices set by drug manufacturers, ends the practice of spread pricing in the Medicaid program by pharmacy benefit managers, and saves taxpayers more than $100 billion,” Portman said.

Brown also supported the bill and pushed for it to provide even greater oversight of pharmacy benefit managers, or PBMS. He was able to get several amendments into the bill, including provisions banning spread pricing, limiting the practice of demanding pharmacies return a portion of the payments they receive, and requiring disclosure of rebates and discounts received from drug manufacturers.

“Pharmacy middlemen shouldn’t be pocketing secret kickbacks instead of passing discounts on to customers,” Brown said. “Requiring more transparency is an important first step toward holding the industry accountable to Ohio taxpayers and patients.”

Grassley and Wyden portrayed their legislation as a middle ground that gives each party something and has the support to become law. Drug prices are a top concern for people with health insurance ahead of the 2020 elections.