Pallone Discusses Comprehensive Legislation to Lower Prescription Drug Costs

Press Release

Today, Congressman Frank Pallone, Jr. (NJ-06) discussed his bold, comprehensive plan to lower prescription drug costs. He was joined by Senator Vin Gopal, Assemblywoman Joann Downey, Assemblyman Eric Houghtaling, Brendon Blake from AARP New Jersey, and Maura Collingsgru of New Jersey Citizen Action. Last month, Pallone introduced H.R. 3, the Lower Drug Costs Now Act, which will lower prescription drug costs by empowering the federal government to negotiate lower prices for Americans, stopping drug companies from ripping off Americans and charging them more than other countries for the same drugs and creating a new, $2,000 out-of-pocket limit on prescription drug costs for seniors through Medicare Part D.

In New Jersey, the average annual cost of prescription drugs rose nearly 58 percent between 2012 to 2017. In 2017, 24 percent of New Jersey residents did not take medication as prescribed because of high costs. Currently, prescription drug companies often charge Americans three, four, or even ten times more for their prescriptions than what they charge for the same drugs in other countries. In many cases, these companies also often raise the prices of their drugs each year faster than the rate of inflation.

"New Jerseyans should not have to choose between making a rent payment, putting food on the table, and affording lifesaving prescription medications," Congressman Pallone said. "That's why I introduced legislation that will lower prescription drug costs and invest in new treatments and cures. It's long past time to give the federal government the authority to negotiate drug prices with the pharmaceutical manufacturers in order to reduce costs for consumers. It's time we negotiate a better deal for the American people."

The Lower Drug Costs Now Act would level the playing field for American patients and taxpayers by:

Ending the ban on Medicare negotiating directly with drug companies, and creating powerful new tools to force drug companies to the table to agree to real price reductions.
Giving all Americans access to lower drug prices negotiated by the federal government.
Stopping drug companies from ripping off Americans while charging other countries less for the same drugs by limiting the maximum price for any negotiated drug to be in line with the average price in countries like ours.
Creating a new, $2,000 out-of-pocket limit on prescription drug costs for Medicare beneficiaries and reversing years of unfair price hikes above inflation across thousands of drugs in Medicare.
Reinvesting in innovation and the search for new cures and treatments. Pallone hopes to use the anticipated cost-savings from lowering drug prices to reinvest in the search for new breakthrough treatments and cures at the National Institutes of Health, as well as investing in our nation's health care including improvements to Medicare.
"You shouldn't have to pay a premium for the privilege of having a negotiator on your side," said New Jersey State Senator Vin Gopal (D-Long Branch). "It's time to give Medicare real muscle against price-gouging middlemen and drug manufacturers - because if they're going to jack up prices to try and squeeze American taxpayers for every last cent, then America's taxpayers have a right to tell them: 'No, thanks - we're taking our money somewhere else.' Every patient deserves to have an advocate, and I'm glad to see Congressman Pallone leading the way to make that happen."

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