Democratic presidential candidate Pete Buttigieg has unveiled a plan to cut drug prices for senior citizens and punish firms for rising prices, as This Is Money Monday.
Buttigieg indicated that his plan would reduce out-of-pocket prescription drug costs for seniors on Medicare by at least 50% by the end of his first term and limit out-of-pocket prescription drug costs for his public insurance plan to less than $250 per month.
"Instead of siding with Americans, politicians have stood with big pharma, as they did when Congress barred the federal government from negotiating with pharmaceutical companies on drug prices for seniors," remarked Buttigieg, continuing "it's time for a new era of leadership in Washington who will finally make drugs affordable and take on pharmaceutical companies."
An aide to Buttigieg indicated that the plan would be "cost neutral," with between $1 billion and $2 billion of the costs being covered by taxes and penalties on drug companies.
Buttigieg's plan would additionally require drugmakers to disclose prices and manufacturing costs to the federal government to boost pricing transparency, reduce median annual out-of-pocket spending and manage the opioid epidemic by reducing the cost of naloxone.
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