Grassley gambles on drug price bill despite GOP doubts

Grassley gambles on drug price bill despite GOP doubts
© Greg Nash

Senate Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyMulvaney faces uncertain future after public gaffes State cites 38 people for violations in Clinton email review Lawmakers from both sides of the aisle mourn Cummings MORE (R-Iowa) is pushing forward with a bipartisan deal to lower drug prices this week despite objections from some members of his own party and a tough road ahead.

The Finance Committee will vote on the deal between Grassley and Sen. Ron WydenRonald (Ron) Lee WydenHouse passes bill taking aim at anonymous shell companies Senate Democrats to force vote Wednesday to overturn IRS rules on SALT deduction cap Hillicon Valley: Facebook removes Russian, Iranian accounts trying to interfere in 2020 | Zuckerberg on public relations blitz | Uncertainty over Huawei ban one month out MORE (Ore.), the panel's top Democrat, on Thursday, setting up a closely watched vote for Republican senators.

Many GOP senators are objecting that the plan is too close to price controls for drugs, which Republicans have traditionally opposed.

The concerns from within the GOP ranks make it less likely that Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGraham to introduce resolution condemning House impeachment inquiry Overnight Defense: Trump's Syria envoy wasn't consulted on withdrawal | McConnell offers resolution urging Trump to rethink Syria | Diplomat says Ukraine aid was tied to political investigations Partisan squabbles endanger congressional response to Trump's course on Syria MORE (R-Ky.) will bring the bill up for a vote in the full Senate, given he has been reluctant to vote on issues that split his caucus, particularly with a presidential election approaching.

But the announcement from Grassley and Wyden of a deal on Tuesday is a step forward, and the White House made favorable comments on Tuesday, which could help ease GOP lawmakers’ concerns.

The bill's most contentious measure imposes a new limit on price increases in Medicare's prescription drug program, called Part D, forcing drug companies to pay money back if prices rise faster than inflation. The measure also caps Medicare beneficiaries' out-of-pocket costs.

GOP lawmakers could face a tough decision.

In a negative sign for the deal’s chances, Sen. John ThuneJohn Randolph ThuneHillicon Valley: Zuckerberg would support delaying Libra | More attorneys general join Facebook probe | Defense chief recuses from 'war cloud' contract | Senate GOP blocks two election security bills | FTC brings case against 'stalking' app developer The Memo: Trump 'lynching' firestorm is sign of things to come Senate Republicans block two election security bills MORE (R-S.D.), the Senate’s No. 2 Republican, told reporters Tuesday he has concerns with the new limits on price increases in saying they are a departure from “free market forces.”

“I suspect I’m not the only one who [has] concerns,” Thune said.

But in a positive sign, the White House praised the measure.

“We will work with Senators to ensure this proposal moves forward and advances the President’s priority of lowering drug prices even further and increasing transparency in healthcare for the benefit of all Americans,” said White House spokesman Judd Deere.

Grassley is touting the analysis of the measure from the nonpartisan Congressional Budget Office (CBO) to try to win over Republican senators.

The CBO found that the measure will save taxpayers more $100 billion over a 10-year period. It will also lower out of pocket costs for Medicare beneficiaries by $27 billion and lower premiums by $5 billion according to the CBO.

“I think it’s moving in a positive direction,” said Sen. John CornynJohn CornynThune calls Trump remarks on lynching 'inappropriate' Cash surge puts more Senate races in play Trump slams 'very dumb' O'Rourke for proposals on guns, tax exempt status for churches MORE (R-Texas). “The CBO score was certainly encouraging.”

But other GOP senators sounded a less positive note.

“I still have some concerns, but I hope we can work it out,” said Sen. Pat RobertsCharles (Pat) Patrick RobertsPompeo expected to visit Kansas on Thursday Jeffress dismisses evangelical opposition to Trump's Syria decision: Not one will 'switch their vote' Overnight Defense: Trump defends Turkey amid fierce criticism | Senators demand briefing on Syria decision | Turkey confirms strikes on Syrian border | White House says it won't cooperate on impeachment inquiry MORE (R-Kan.). Asked if he could vote for it on Thursday, Roberts said, “We’ll see.”

Sen. Rob PortmanRobert (Rob) Jones PortmanRural broadband in jeopardy unless Congress fixes taxing problem Overnight Defense — Presented by Boeing — Pence says Turkey agrees to ceasefire | Senators vow to move forward with Turkey sanctions | Mulvaney walks back comments tying Ukraine aid to 2016 probe On The Money: Senate fails to override Trump veto over border emergency | Trump resort to host G-7 next year | Senators to push Turkey sanctions despite ceasefire | McConnell tees up funding votes MORE (R-Ohio) also said he wants changes.

Grassley's bill can also expect fierce pushback from drug companies, who have long been a powerful force in Washington.

Drug companies staunchly oppose the deal, and the pharmaceutical lobby was whipping votes against the deal on Tuesday, industry lobbyists said.

Steve Ubl, the CEO of the Pharmaceutical Research and Manufacturers of America, warned that the measure would impose “price controls” and siphon billions of dollars away from research and development by drug companies.

President TrumpDonald John TrumpGraham to introduce resolution condemning House impeachment inquiry Support for impeachment inches up in poll Fox News's Bret Baier calls Trump's attacks on media 'a problem' MORE’s attention to the bill will be a key factor. If he leans in and pressures McConnell to bring it up for a vote, it would improve the measure’s chances.

Trump has made lowering drug prices a priority and opened the door to working with Democrats on the issue. The administration's own efforts to lower drug costs have seen mixed results, leaving the president and allies eager for a legislative win on the issue.

But there will be competition for Trump's support, in particular from a rival drug pricing bill in the House.

Speaker Nancy PelosiNancy PelosiGraham to introduce resolution condemning House impeachment inquiry Democrats say they have game changer on impeachment Hillicon Valley: Zuckerberg would support delaying Libra | More attorneys general join Facebook probe | Defense chief recuses from 'war cloud' contract | Senate GOP blocks two election security bills | FTC brings case against 'stalking' app developer MORE’s (D-Calif.) office said Monday that it will unveil House Democrats’ own drug pricing bill in September.

That measure will go farther than the Senate bill by allowing Medicare to negotiate drug prices, a measure that has long been a top priority for Democrats but that is largely opposed by Republicans.

Pelosi aide Wendell Primus said Monday that he is “still very optimistic” that Trump will sign on to what House Democrats are working on.

In the upper chamber, Sen. Lamar AlexanderAndrew (Lamar) Lamar AlexanderGOP braces for impeachment brawl McConnell tightlipped as impeachment furor grows GOP senator: 'Inappropriate' to discuss opponents, but impeachment a 'mistake' MORE (R-Tenn.), chairman of the Senate Health Committee, and Sen. Patty MurrayPatricia (Patty) Lynn MurrayDemocrats urge Rick Perry not to roll back lightbulb efficiency rules Biz groups say Warren labor plan would be disaster Freedom of the press under fire in Colorado MORE (D-Wash.) are also working on their own package to lower health care costs.

Trump’s support is far from assured, though, and getting either the House bill or a Senate bill through the full upper chamber will be an extremely tough task.

There is also pressure from the left, especially in the House, to make the efforts even stronger.

In the Senate, progressive Sen. Sherrod BrownSherrod Campbell BrownHillary Clinton has said she'd consider 2020 race if she thought she could win: report Democrats jump into Trump turf war over student loans Critics pounce as Facebook crypto project stumbles MORE (D-Ohio) said the Grassley–Wyden deal is “a start” but said he would like it to go further.

“It’s a start, but you can’t do this right unless you have direct negotiation with the drug companies,” Brown said Tuesday.

“I think they're making progress. I appreciate the work Wyden did on the bill, I think Grassley made some progress here," he continued. "But I'm going to look at it and understand it better.”