WASHINGTON, D.C.—Finance Committee members Senator Peter Welch (D-Vt.) and Catherine Cortez Masto (D-Nev.), alongside Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) today introduced the No Big Blockbuster Bailouts Act (NOBBBA), a bill to reverse Republicans’ policies in the so-called ‘One Big Beautiful Bill Act’ that block Medicare from negotiating the price of blockbuster drugs. The NOBBBA will ensure seniors, people with disabilities on Medicare, and families can access the lower-priced prescriptions they need.
The non-partisan Congressional Budget Office (CBO) found this week that the Republican tax and spending bill’s exemption and delay of Medicare drug price negotiation on certain drugs provided a staggering $8.8 billion bailout to Big Pharma—nearly double the original estimate. This exclusion included several blockbuster cancer and rare disease drugs, including Keytruda (Merck), Opdivo (Bristol-Myers Squibb), and Darzalex (Johnson & Johnson). As a result of Republicans’ tax bill, seniors with cancer and people with disabilities will be forced to pay higher out-of-pocket costs on drugs while Big Pharma profits.
“Republicans are forcing seniors with cancer to pay more for the prescription drugs they need and foot the bill for Big Pharma’s massive $8.8 billion bailout. It’s beyond outrageous,” said Senator Welch, a member of the Senate Finance Committee and champion of the Inflation Reduction Act’s drug negotiation provisions. “Our commonsense bill blocks the Trump Administration’s bailout, lowers costs for seniors and families, and protects the hard-fought ability for Medicare to negotiate drug prices.”
“Republicans can’t stop giving sweetheart deals to Big Pharma. While Trump continues to trot out Big Pharma executives at the White House, Republicans in Congress have been busy making sure these corporations get bailed out while Americans continue to pay more for their prescriptions. This legislation is a no-brainer to correct this Trojan Horse effort to undermine Medicare negotiation,” said Senate Finance Committee Ranking Member Wyden.
“The Republican tax bill was a big pharma bailout, exempting life-saving drugs that Americans rely on from potentially lower prices,” said Senator Cortez Masto, a member of the Senate Finance Committee. “When Democrats gave Medicare the authority to negotiate prescription drug prices, it was a promise to give seniors real financial relief, but Republicans’ tax bill broke that promise. We must overturn these disastrous policies making life more expensive for seniors across America.”
The No Big Blockbuster Bailouts Act (NOBBBA) would repeal Republicans’ bailout for certain blockbuster drugs. Under current law, all “orphan-only drugs”—medications used to treat rare diseases—are ineligible for negotiation, regardless of how much Medicare spends on them. Under NOBBBA, if Medicare spending of a rare disease drug exceeds $400 million annually, that drug would be eligible for negotiation regardless of orphan status. NOBBBA therefore protects incentives for rare disease drug development and innovation by targeting blockbuster drugs for negotiation, while still allowing Medicare to get lower prices for drugs that cost the most to taxpayers.
Democrats championed policies to finally give Medicare the authority to negotiate drug prices as part of the Inflation Reduction Act of 2022. Next year, lower prices will take effect for the first 10 prescription drugs, saving taxpayers an estimated $6 billion, and saving Medicare enrollees—seniors and people with disabilities—an estimated $1.5 billion in out-of-pocket costs. Medicare-negotiated pricing for the next 15 drugs will take effect in 2027. This policy is overwhelmingly popular, with 86% of voters polled in 2024 expressing support for preserving or expanding Medicare’s ability to negotiate drug prices—including 81% of Republican voters.
Read and download the text of the No Big Blockbuster Bailouts Act (NOBBBA) here.
Read more about the No Big Blockbuster Bailouts Act (NOBBBA).
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