According to a preliminary analysis from the Congressional Budget Office, House Speaker Nancy Pelosi’s bill to lower prescription drug prices would save Medicare $345 billion over 10 years, CNBC reported.
The greatest savings would come in 2028 at $93 billion, the federal agency said, adding that the savings would not begin until 2023, assuming the bill gets passed before the end of this year.
According to the CBO, the largest savings would come from the provision that allows Medicare to negotiate lower prices on as many as 250 of the most expensive drugs annually and apply those discounts to US private health plans.
The legislation includes a penalty, starting at 65% of the gross sales of the drug in question, on pharmaceutical companies that refuse to negotiate or fail to reach an agreement with the US government,
"A manufacturer that was dissatisfied with a negotiation could pull a drug out of the US market entirely, though CBO expects that would be unlikely for drugs already being sold in the US," said CBO director Phillip Swagel.