The new proposal, which is a key part of the 3.5 trillion dollar spending package proposed by the Democrats, also suggests limiting out-of-pocket drug costs for the elderly.
‘While industry companies work hard developing life-saving Covid-19 vaccines, crippling drug prices are unacceptable,’ the U.S. leader said.
Members of the blue party in the Senate believe that lower prices will raise hundreds of billions of dollars by increasing sales.
The pharmaceutical industry and congressional Republicans resist allowing Medicare to negotiate lower prices. Therefore, Biden’s endorsement is significant in moving the proposal forward.
The initiative will propose penalizing pharmacies that raise prices faster than inflation and will allow local authorities in each state to import cheaper drugs from Canada.
The announcement ends months of speculation about the administration’s commitment to creating health care reforms.