Lowering Drug Costs for American Families Act

Key Points

• Congress would expand Medicare drug price negotiations by increasing the number of drugs negotiated each year from 20 to 50.
• The bill would let private health plans (job-based and individual plans) choose to use Medicare’s negotiated drug prices; plans can opt out, and opt-outs would be made public.
• For Medicare drug negotiations starting in 2028, negotiators would have to consider average drug prices in Australia, Canada, France, Germany, Japan, and the United Kingdom.
• It would extend Medicare-style inflation rebates to drugs sold in the commercial market, aiming to discourage big price hikes outside Medicare too.
• Starting in 2027, private insurance plans would face a $2,000 yearly cap on what people pay out of pocket for prescription drugs, and selected insulin would be capped at $35 per 30-day supply with no deductible.