Democrats’ Compromise Would Allow Medicare Drug Price Negotiations For First Time

Politico: ‘A Massive Step Forward’: Democrats Clinch Drug Pricing Deal 
Democrats on Tuesday announced an agreement on drug pricing reform, coming out in favor of allowing Medicare Part D to negotiate directly with pharmaceutical companies for the first time since its creation, a move the drug industry has fought for nearly two decades. While the latest proposal is far weaker than the version passed twice by the House, even staunch progressives in both chambers are preparing to accept that it’s likely the best they’re able to get in the narrowly divided Congress. (Ollstein, 11/2)

The Washington Post: Democrats Announce Deal On Prescription Drug Pricing As Another Part Of Spending Plan Comes Into Focus 
Senate Majority Leader Charles E. Schumer (D-N.Y.) announced the agreement after a private meeting of party lawmakers, marking a potential end to a battle between some liberals and moderates over a policy priority that many Democrats had pitched over the course of the 2020 presidential election. “Fixing prescription drug prices consistently has been a top issue for Americans year after year,” Schumer said at a news conference. “We’ve heard this from people across the country. . . . Today, we’ve taken a massive step forward in helping alleviate that problem.” (Romm, Sotomayor and Roubein, 11/2)

The New York Times: Democrats Reach Deal To Control Drug Prices In Bill 
The prescription drug deal is limited. Starting in 2023, negotiations could begin on what Senator Ron Wyden of Oregon called the most expensive drugs — treatments for cancer and rheumatoid arthritis, as well as anticoagulants. Most drugs would still be granted patent exclusivity for nine years before negotiations could start, and more complex drugs, called biologics, would be protected for 12 years. But for the first time, Medicare, the federal health insurance program for people 65 or older and for disabled people, would be able to step in after those periods, even if drug companies acquire patent extensions or otherwise game the patent system. (Weisman and Cochrane, 11/2)

The Wall Street Journal: Democrats Reach Deal On Lowering Prescription Drug Prices 
The deal to secure the backing of a few centrist holdouts brings Democrats another step closer to finishing the $1.85 trillion legislation, which party leaders hope to bring to the floor in the House this week. The party is still working through a few other issues in the bill, including immigration and measures curbing carbon emissions, and lawmakers also closed in on a plan for repealing the cap on the deduction for state and local taxes. The final negotiations on those issues will have to contend with the continued skepticism of Sen. Joe Manchin (D., W.Va.), who on Monday said he might vote to kill the legislation in the 50-50 Senate. (Duehren, Wise and Rubin, 11/2)

NPR: Democrats' Deal On Prescription Drugs Would Lower Costs For Seniors
The agreement announced Tuesday would allow Medicare Parts B and D to negotiate prices directly with drug manufacturers on certain drugs and cap out-of-pocket spending for seniors at $2,000 per year, the first innovation of its kind in the program's history. "Fixing prescription drug pricing has consistently been a top issue for Americans year-after-year, including the vast majority of both Democrats and Republicans who want to see a change because they simply cannot afford their medications," Senate Majority Leader Chuck Schumer, D-N.Y., said in a statement. (Wise, 11/2)

And more on the drug pricing compromise —

Politico: The End Of Manchema 
Are they Sinemanch or Manchema? The debate can probably cease. The centrist Democratic senators from Arizona and West Virginia, once united on shaving down the cost of a party-line social spending bill that started at $3.5 trillion, are now going their own way in the final stretch of negotiations on a linchpin of President Joe Biden’s agenda. (Everett and Levine, 11/2)

Stat: Who Wins And Loses In Democrats’ Prescription Drug Pricing Deal 
Congressional Democrats on Tuesday announced they had agreed to a broad plan to overhaul the way America pays for prescription medicines. Under the deal, Medicare would be allowed to negotiate drug prices for both drugs dispensed at the pharmacy counter and those administered in doctors’ offices for drugs older than 9 years or 12 years, depending on the type of drug. Drug makers would have to pay penalties if they hike prices faster than inflation, including for employer-sponsored insurance plans. Seniors’ out-of-pocket costs would be capped at $2,000 per year. Insulin prices per dose will also be capped. (Cohrs, 11/2)

Axios: Pharmaceutical Industry May Avoid Big Losses In Drug Pricing Deal 
The pharmaceutical industry is voicing opposition to the latest drug pricing deal. But the details matter. And the details as they stand suggest drug companies would still retain the power to set prices, and most drugs wouldn't be subject to government price negotiations. (Herman, 11/3)

Also —

Modern Healthcare: Democrats Target Hospitals In Medicaid Expansion Holdout States With DSH Cuts
House Democrats are taking a new approach to convince recalcitrant conservative states to expand Medicaid to low-income adults: threatening funding cuts to hospitals. Under an updated version of the domestic policy package that the House may consider as soon as this week, hospitals in states that don't expand Medicaid could face a 12.5% cut in funding meant to help hospitals that serve large numbers of Medicaid patients. These so-called disproportionate share hospital payments are intended to keep safety net facilities financially stable by offsetting Medicaid's low payment rates and helping cover uncompensated care costs. (Hellmann, 11/2)