WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine) today announced his support for legislation that would help lower the price of prescription drug prices for seniors and save taxpayer money. The Medicare Prescription Drug Price Negotiation Act, introduced today by Senator Amy Klobuchar (D-Minn.) and cosponsored by Senator King, would empower Medicare to negotiate for the best possible prescription medication prices for seniors who are enrolled in Medicare Part D.

“It’s foolish and wrong to force our seniors – who often live on limited incomes – to purchase the medications they rely on at a higher price because the government can’t do what every other company can – negotiate the best price,” Senator King. “This commonsense proposal will help not only lower drug prices for seniors on Medicare, but in doing so, will also save the taxpayers money.”

Under current law, insurance companies providing Part D coverage are permitted to bargain for lower prices while the Medicare program itself is expressly prohibited from doing so. The Medicare Prescription Drug Price Negotiation Act would allow the Secretary of Health and Human Services (HHS) to directly negotiate with drug companies for price discounts for the Medicare Prescription Drug Program, eliminating the clause in current law that expressly bans Medicare from negotiating for the best possible prices, even though the government can often negotiate bigger discounts than insurance companies. Such discounts for large purchases are commonplace in private businesses and Veterans Affairs’ programs, but were prohibited from Medicare at the time Part D was passed.

The bill would help cut costs for more than 35 million seniors, including about 276,000 seniors in Maine, and boost Medicare savings. The National Committee to Preserve Social Security & Medicare has estimated that allowing the Secretary to negotiate directly for Medicare prescription drug discounts could save $24 billion annually or more than $200 billion over 10 years.

Senator King cosponsored this bill last Congress. Senators Richard Blumenthal (D-Conn.), Tim Kaine (D-Va.), Bernie Sanders (D-Vt.), and Jeanne Shaheen (D-N.H.) are also cosponsors of the bill.

###