Exclusive: Dems look to roll back drug pricing exemption

[BumRushDaShow]

Source: msn/Axios

6h


Senate Democrats are launching an effort to repeal a portion of Republicans' budget law that exempts certain "orphan drugs" from Medicare price negotiations, citing estimates that the cost of the carve-out has ballooned.

Why it matters: The measure targets a provision that the biotech industry argues is important for innovation, but that Democrats say is actually a costly handout to major pharmaceutical companies.

Driving the news: The bill, first shared with Axios, would repeal a provision Republicans passed in their reconciliation law in July that expands an existing exclusion for drugs that treat rare diseases from the price talks.

Sponsors Peter Welch (D-Vt.), Ron Wyden (D-Ore.) and Catherine Cortez Masto (D-Nev.) cite a new Congressional Budget Office analysis finding the widened exemption will now cost $8.8 billion over 10 years, up from $4.9 billion.

The new analysis takes into account that three blockbuster cancer drugs — Merck's Keytruda, Johnson & Johnson's Darzalex and Bristol Myers Squibb's Opdivo — would be cut out from price talks between manufacturers and the government, increasing the lost savings.

What they're saying: "Republicans are forcing seniors with cancer to pay more for the prescription drugs they need and foot the bill for Big Pharma's massive $8.8 billion bailout. It's beyond outrageous," Welch said in a statement.

Read more: https://www.msn.com/en-us/news/other/exclusive-dems-look-to-roll-back-drug-pricing-exemption/ar-AA1OSmJJ

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Link to BILL (PDF) - https://www.welch.senate.gov/wp-content/uploads/2025/10/Bill-Text-No-Big-Blockbuster-Bailouts-Act-Welch-20251021.pdf

Link to Congressional Budget Office (CBO) REPORT (PDF) - https://www.cbo.gov/system/files/2025-10/61818-Pallone-etal-orphan-drugs-letter-10-20-25.pdf