The completion of the prescription drug section could be among the final major changes to a $1.85 trillion climate change and social safety net bill that Democratic leaders hope to bring to a House vote this week. Smaller issues remain to be ironed out, including a way to deal with methane, a powerful greenhouse gas, and the state and local tax deduction, which some House members say must be fully restored to win their votes.
But House Democrats appeared determined to press forward, even without an ironclad commitment by holdout moderates in the Senate to vote for the final package.
The prescription drug compromise was hard-fought and required Democrats to overcome an onslaught of lobbying by the powerful pharmaceutical industry, which succeeded in substantially watering down their initial bid to allow the government to negotiate prices on a far broader universe of drugs. The final deal includes a $2,000 annual cap on out-of-pocket expenditures by older Americans facing catastrophic health issues, a strict $35 monthly cap on insulin expenses and automatic rebates on drugs whose prices rise faster than inflation.
But the pharmaceutical industry won its share of concessions. The inflation rebates initially contained a “look back” provision that would have assessed rebates on drug prices that began to soar as far back as 2012. That would have yielded one-time levies on drug companies in the billions of dollars. And some Democrats wanted Medicare to have price-negotiating authority immediately, with no patent exclusivity periods.