Democrats Attempt to Revive Socialized Medicine With Drug Pricing Scheme

Democrats are working toward their goal of socialized medicine with their so-called Affordable Insulin Now Act, which would be the largest government power grab concerning private health insurance since the Affordable Care Act.

MAKE NO MISTAKE: We all want to keep the cost of lifesaving medicine affordable for Americans, but H.R. 6388 is a bait and switch by Democrats to accomplish their Socialist agenda. This reckless bill will only increase government control over healthcare, destroy healthcare innovation, and burden those most in need of affordable medication.

DEMOCRATS’ SOCIALIST HEALTHCARE POWER GRAB:

  • HR 6388 is another attempt by the Democrats to revive socialized medicine and their drug pricing scheme that will destroy medical innovation and lead to fewer cures.

  • It’s the largest expansion of the federal government’s role in private health insurance design since Obamacare, and it gives health care middlemen, such as pharmacy benefit managers, a pass to keep hiding out-of-pocket savings from patients. It’s not the right approach.

  • It uses a Budget Gimmick to Delay a Trump Admin Rule that “Finds” Money Simply by Delaying Regulations:

    • The Congressional Budget Office’s score indicates this will cost the federal government more than $11 billion over the next 10 years through higher subsidies for higher premiums.

    • For one additional year, further delays the Trump administration rebate rule (which would lower out-of-pocket costs for patients with all diseases), “saving” $20 billion.

  • It also creates a $9 billion slush fund by adding the remaining nearly $9 billion in purported savings to the Medicare Improvement Fund (MIF), which Democrats will likely spend on other partisan priorities.

REPUBLICAN SOLUTIONS TO PRESCRIPTION COSTS:

  • Some of the more than eight million Americans who use insulin products face affordability and access challenges.

  • Thanks to the 2020 launch of a new regulatory approval pathway, biosimilar insulins can now come to market, joining existing follow-on insulins and authorized generics in driving down costs through competition.

  • Regulatory actions taken by the Trump Administration, such as the creation of the Part D Senior Savings Model and the issuance of new flexibilities for high-deductible health plans (HDHPs), have helped to address certain drivers of high out-of-pocket insulin spending.

  • Congress could build on these efforts or pursue market-driven solutions, such as by redesigning the Medicare Part D benefit with an out-of-pocket cap or allowing for more Part D plan choices, to reduce prescription drug costs for consumers.

  • When weighing policy options that involve new government mandates, policymakers should proceed with caution, given the potential for premium hikes, deficit increases, and other unintended consequences.

Instead of a Socialist tax-and-spend spree, House Republicans have offered a real solution to increased healthcare costs. The Lower Costs, More Cures Act, or H.R. 19, works to lower the cost of prescription drugs for all diseases, not just diabetes, by:

  • Lowering health care costs and ensuring America leads in health care innovation for more cures and treatments.

  • Giving patients more drug price transparency and ensuring public disclosure of drug costs and discounts.

  • Increasing low-cost options by bringing more generic and biosimilar competition to the marketplace fast. It caps seniors’ out-of-pocket costs for insulin at $50 per month.
  • Allowing high deductible health insurance plans to cover insulin before the deductible kicks in.