The news: House Democrats introduced a new healthcare bill on Thursday aimed at expanding prescription drug price negotiations and extending benefits to consumers covered by private insurance.

• The proposal would increase the number of drug brands negotiated by Medicare every year as part of the Inflation Reduction Act passed from 20 to 50.
• The bill also seeks to extend the lower drug prices negotiated currently for Medicare recipients to the more than 164 million US workers covered by private insurance.
• It would also cap out-of-pocket drug costs at $2,000 a year for those with private insurance, mirroring an existing IRA provision for Medicare.

Why it matters: Healthcare costs and affordability are back in the public eye, thanks to the recent federal government shutdown over extending Affordable Care Act tax subsidies.

While the Democrats’ proposal bill is a bold extension of the Inflation Reduction Act prescription drug negotiations, the cost-cutting ideas in it are likely to appeal to most budget-constrained healthcare consumers.

• Almost half (46%) of US adults are worried about affording healthcare next year, with 37% specifically concerned about prescription drug costs, per a West Health and Gallup survey.
• Employer-sponsored health insurance is expected to increase by 6.7% next year, the largest rise in 15 years, per a Mercer survey, driven by prescription drug spending which increased 9.4% among employers with more than 500 workers.

Implications for pharma companies: The proposal is unlikely to advance out of the House, but it adds fuel to the ongoing debate over drug pricing, and increases the pressure on pharma companies.

Most drugmakers are already negotiating prices either with the Trump administration directly or under the Medicare IRA framework. This latest congressional push puts a spotlight on expanding beyond federal programs to commercial insurers. Pharma companies need to continue engaging in good-faith negotiations, emphasizing the long-term value of treatment, and calling out added costs driven by intermediaries like pharmacy benefit managers.

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