For decades, the U.S. has spent more on prescription drugs per citizen than any nation in the world. It’s taking its toll. Nearly one in three adults in the U.S. have skipped medication doses or elected not to fill a prescription because of the cost. Prescription drug prices are especially tough on working families and those who manage chronic conditions like asthma, diabetes, or high cholesterol. As divided as the nation appears politically, this appears to be one issue on which nearly all Americans agree – drug prices are too high, and the projected price increases are alarming.

How Does Would The H.R.3 Act Work? 

H.R. 3, also known as the Elijah E. Cummings Lower Drug Costs Now Act for the late Maryland member of congress who was a champion for lower drug costs, would require the Department of Health and Human Services secretary to negotiate with the manufacturers of 50 to 250 branded medicines every year. The result is that prices would be capped at 120 percent of a drug’s average manufacturer price in countries including Australia, Canada, France, Germany, Japan and the United Kingdom, according to the Washington Post. Manufacturers would face steep fines if they were to charge more, or if they raise prices faster than inflation.

The Congressional Budget Office indicates that this bill can make a significant difference in lowering prescription drug costs and therefore health care costs. They project that HR. 3 would reduce the prices of negotiated drugs by 55 percent initially and by as much as 40 to 50 percent in the coming years. This translates to significantly lower costs for both consumers and the federal government, saving an estimated – and staggering - $456 billion over the next decade.

Speaker of the House of Representatives Nancy Pelosi has issued this statement: “The is essential legislation that will make a transformative difference in the lives of hard-working American families, millions of whom cannot afford their medicines, especially in this time of pandemic. It is unacceptable that Americans have to pay three times more for their prescriptions than what Big Pharma charges in other countries for the same medicine, all while Big Pharma rakes in massive profits.”

Th bill was first introduced into the House of Representatives in 2019 by Frank Pallone and received 106 co-sponsors, with unanimous support from the Democrat representatives. The bill was sent to the Senate, which did not bring the bill to a vote. However, this year the bill was reintroduced into the House.

Will it Make a Difference? 

It is true that unlike other high-income countries where health plans directly negotiate drug prices with manufacturers, in the United States Medicare is prohibited from doing so by the non-interference clause in the Medicare Modernization Act of 2003. 

Medicare Part D accounts for roughly 30% of total U.S. prescription drug spending, largely due to a small number of brand-name drugs. Because Medicare is forbidden from drug price negotiation, pharmaceutical companies continue escalating prices and drive up overall spending, resulting in massive profit increases for drug manufacturers with higher costs for consumers. HR. 3 would allow Medicare to negotiate prices with drug companies and increase price transparency, among other provisions. The prices would also be capped relative to other countries (such as the cost of insulin products, where the United States far outspends other nations), thereby decreasing price gouging on enrollees.

Patients who require new drugs only recently approved by the US Food and Drug Administration could also benefit as the bill contains provisions to keep down the cost of certain new single-source brand name drugs once they have gained FDA approval. If the price exceeds a set amount, the Department of Health and Human Services (HHS) would be required to negotiate a maximum price, helping to keep prescription costs down for patients.

The savings from lower drug prices would allow for more spending on dental, vision, and hearing services as well as Medicaid and Medicare program expansion. Medicare beneficiaries would also gain from the proposed $2,000 limit on out-of-pocket costs for prescription drugs and the proposals to set limits to cost-sharing on certain medications, such as insulin products. This would impact families and individuals country-wide.

Lower Your Drug Costs Today 

As consumers await government action to reduce prescription drug costs, they’re turning to other resources to help them manage their prescription drug costs. ModRN Health is a next generation pharmacy savings platform built to help consumers afford on their medications, thereby improving medical adherence and patient health outcomes. More than just a pharmacy discount card, its sophisticated technology allows customers users to search in their zip code to find the cheapest prices for their medications. Consumers also earn Reward Points when they purchase prescriptions with the platform.

Program features include:

• Up to 80% discounts at over 62,000 pharmacies throughout the US
• Search to find the best prices locally for medication
• Loyalty rewards program
• Extensive information on drugs, conditions, side effects, etc.
• Available in Spanish and English

ModRN Health can help you save up to 80% on your medications. Simply search for your meds, and find the best prices locally, right now.