Senate Bill Introduced to Curb High Drug Prices

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Senators Richard Blumenthal (D-CT), Kamala Harris (D-CA), Jeff Merkley (D-OR), and Amy Klobuchar (D-MN) have introduced the Curbing Unreasonable Rises and Excessively (CURE) High Drug Prices Act today to prohibit unjustified drug price increases. The measure would give HHS the authority to block such increases and reimburse consumers who were harmed.

According to the senators, the CURE High Drug Prices Act would require pharmaceutical companies to submit justification to HHS for any price increases of:

  • 10% or more over the preceding year;
  • 20% or more over the preceding three years; and,
  • 30% or more over the preceding five years.

If HHS found a price increase to be unreasonable, it could require the company to:

  • Reimburse consumers and payors, including Medicare and Medicaid;
  • Lower the price back down to its original price before the price gouging for up to one year; and,
  • Pay a civil penalty up to three times the excessive amount the manufacturer received as a result of price gouging.

HHS could also refer the matter to the Department of Justice for enforcement.

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