Five quick takeaways:
- Ms. Harris’ plan would authorize HHS to annually set fair prices for drugs based on average prices of those drugs in comparable countries like Canada, France, Germany and Japan.
- Ms. Harris’ plan would tax pharmaceutical company profits from selling drugs at a cost more than 100 percent above the fair price benchmark. The proceeds would be returned to consumers through rebates.
- HHS would also intervene if drug companies raise the prices faster than inflation.
- Her plan would also close a loophole in the tax code related to direct-to-consumer advertising for drug companies. The proceeds would be used as funding for NIH drug research.
- The federal government would take regulatory action against companies that fail to comply with fair pricing, including licensing patents to competitor companies if necessary.
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Biden, Sanders welcome fight on healthcare: 4 notes on the Democrats’ growing division
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