Correa Votes To Lower Prescription Drug Costs For Americans
Washington, DC – Today, Congressman Lou Correa (D-CA-46) joined his colleagues in passing H.R.3 - Lower Drug Costs Now Act. This legislation will lower drug costs for countless Americans, including our seniors and those who need critical medication on a daily basis. The bill allows the federal government to negotiate for drug prices using the savings to cover vision, dental, and hearing for our seniors.
Rep. Correa said, "This is a strong measure that ensures all Americans have better access to the critical medications—like insulin. It is imperative to the countless Americans struggling to afford medications that we pass H.R. 3 into law and deliver real relief to the American people today. H.R. 3 aims to keep drug prices in check.
"The medications curing the world are developed here in the United States by American pharmaceutical companies. The scientific minds behind these life-saving drugs have transformed our world. Diseases like polio and the measles defined my childhood. Today these diseases are nearly eradicated thanks to modern pharmaceuticals."
In addition, Congressman Correa’s amendment with Congressman Tom O'Halleran (D-AZ-01) passed the House and will allow medically underserved areas—like Santa Ana, California—to have access to better healthcare.
The amendment "establishes a grant program within the Department of Health and Human Services (HHS) for hospitals located in rural and medically underserved areas to cover the start-up costs for establishing a Graduate Medical Education (GME) program or a partnership with a hospital that has an existing program. It also includes a reporting requirement for the Government Accountability Office (GAO) to analyze whether doctors trained in GME programs continue to practice in a rural or medically underserved area after completing their training.
Background: H.R.3 - Lower Drug Costs Now Act of 2019 establishes several programs and requirements to improve access and lower costs of prescription drugs. The bill requires the Centers for Medicare & Medicaid Services (CMS) to negotiate prices for certain drugs. Specifically, the CMS must negotiate maximum prices for insulin products; and at least 25 of the most needed and expensive brand name drugs that do not have generic competition. The negotiated prices must be offered under Medicare and Medicare Advantage, and may also be provided under private health insurance unless the insurer opts out.
The negotiated maximum price may not exceed 120% of the average price in Australia, Canada, France, Germany, Japan, and the United Kingdom, or if such information is not available, 85% of the U.S. average manufacturer price. Drug manufacturers that fail to comply with the bill's negotiation requirements are subject to civil and tax penalties.
Rep. Lou Correa represents California’s 46th Congressional District. He serves as Chair of the House Homeland Security Subcommittee on Transportation and Maritime Security, and as the Vice-Chair of the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet. Read more here.
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