Under Kamala Harris’ Drug Plan, HHS Would Set A ‘Fair Price’ And Anything Above That Would Be Taxed At 100%
2020 Democratic presidential candidate Sen. Kamala Harris (D-Calif.) also says she would work to close a tax loophole for pharmaceutical companies’ direct-to-consumer advertising expenses, and allow the importation of drugs from Canada.
How Kamala Harris Would Address Rising Drug Prices
Kamala Harris on Tuesday announced a plan to reduce prescription drug costs and rein in pharmaceutical companies, including linking the price of drugs to their prices in other countries. The California senator is expected to promote the plan at an AARP forum in Davenport, Iowa. (Siders, 7/16)
Democrat Harris Unveils Plan To Lower Drug Costs, Put 'People Over Profit'
Harris, a U.S. senator from California, said her proposal would dramatically lower drug costs by allowing the federal government to set fair prices for what companies can charge and forcing them to pay rebates to consumers for medicines sold at artificially high rates. “As President, I will not stand idly by as Americans pay thousands of dollars for prescription drugs while big pharmaceutical companies rake in massive profits,” Harris said in a statement ahead of speaking about the plan at a candidate forum in Iowa, the first state to hold a nominating contest. (Reid, 7/16)
Kamala Harris Wants The Federal Government To Set The Price Of Some Drugs To Lower Costs
Under the proposal, the Department of Health and Human Services would set a "fair price" for any drug that is sold for a cheaper price in an economically comparable county -- the plan cites the United Kingdom, France, Germany, Japan and Australia as examples -- or when a company hikes its price by more than inflation. The plan also slaps a tax of 100% on all profits drug makers earn from selling a drug above the fair price. These funds will ultimately go to consumers, either at the pharmacy counter or through rebates. And Harris would end the tax loophole pharmaceutical companies receive for direct-to-consumer advertising expenses. (Merica and Luhby, 7/16)