House Speaker Pelosi unveils new plan to lower drug prices

House Speaker Nancy Pelosi unveiled a long-waited ambitious plan to lower drug prices for seniors on Medicare and younger people with private insurance on Thursday -- a move signaling how Democrats will address one of the major concerns for the 2020 election.

Pelosi's new plan would empower Medicare to negotiate prices for the 250 costliest drugs, including insulin. Pharmaceutical companies that refuse to negotiate could face steep penalties. Additionally, drugmakers that hike prices beyond inflation would have to pay rebates to Medicare.

The plan would limit copays for seniors covered by Medicare’s “Part D” prescription drug program to $2,000. And Medicare-negotiated prices would be available to other buyers, such as employer health plans.

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Her plan, which earned a call-out from President Trump on Twitter, is a marker in what’s shaping up as a high-stakes negotiation to determine if a drug pricing compromise can pass Congress this year.

Key points of Pelosi's plan:

• Medicare would be authorized to negotiate prices for the drugs with the greatest total cost to the program and the U.S. health care system (This includes pharmacy drugs covered through the popular “Part D” prescription benefit, along with “Part B” medications dispensed in doctors’ offices, which covers many cancer drugs)
• Drugmakers would be required to pay rebates to Medicare if they hike their prices beyond the increase in inflation.
• Limit what seniors pay out of pocket for their medications to $2,000 a year. 

Pelosi’s office says her plan is to have the legislation introduced and moved through House committees to a vote on the floor. If a compromise can be reached among House Democrats, the Trump White House and enough GOP lawmakers in the senate, a drug pricing package could be added to year-end budget legislation.

If both parties fail to reach a compromise, they will have to take their fight into the 2020 election.

The legislation appears to be tailored to Pelosi’s Democratic majority in the House but it also incorporates ideas from the Trump administration and from Republican and Democratic senators. However, many Republicans oppose the Medicare negotiations that are at the forefront of her plan, with a group of House Republicans led by Rep. Greg Walden, R-Ore., calling it “a socialist proposal to appease her most extreme members.”

Americans across party lines say lowering prescription drug costs should be a top priority for Congress this year. According to a new Fox News poll released on Wednesday, health care was named as the most important issue voters were taking into consideration when sizing up presidential candidates for the 2020 election.

In the poll, 10 percent of people named the issue as a “deal-breaker” when choosing between nominees.  How to handle the challenge of health care is an issue that is not only dividing politicians – but voters, too. According to the Fox News poll, 68 percent of people said they support expanding the Medicare program so that everyone has the option to buy in – if they choose to. Twenty-four percent of respondents opposed that measure, which is generally supported by more moderate Democratic candidates.

The Associated Press contributed to this report.