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Booker, Sanders propose new federal agency to control drug prices

Booker, Sanders propose new federal agency to control drug prices
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Sens. Cory BookerCory Anthony BookerDemocratic senators unveil bill to ban discrimination in financial services industry Obama endorses Espy in Mississippi Senate race Durbin says he will run for No. 2 spot if Dems win Senate majority MORE (D-N.J.) and Bernie SandersBernie SandersThe Hill's 12:30 Report - Presented by Facebook - Election night could be a bit messy The Hill's Morning Report - Sponsored by Facebook - Trump, Biden blitz battleground states Oct. 29: Where Trump and Biden will be campaigning MORE (I-Vt.) on Friday introduced a bill that would create a new federal agency focused on controlling the costs of prescription drugs. 

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The Prescription Drug Affordability and Access Act would form the Bureau of Prescription Drug Affordability and Access. 

The 2020 Democratic hopefuls were joined by fellow White House contender Sen. Kamala HarrisKamala HarrisHarris to travel to Texas Friday after polls show tie between Trump, Biden Harris more often the target of online misinformation than Pence: report Maya Rudolph says she loves playing Kamala Harris on SNL: 'Feels like being on the side of the good guys' MORE (D-Calif.) as sponsors of the legislation. 

One of the main tenants of the proposal is that if a drug company did not comply with the regulations, it would void exclusivity protections, allowing other companies to produce generic copies of a drug.

The senators noted the legislation is one of the few bills to directly address a drug's list price, which is the cost before any discounts or rebates and is usually only paid by the uninsured. 

Under the bill, manufacturers planning to bring a new drug to the market would have to submit to the bureau the cost of research and development, the cost of the drug and of comparable medications in other countries and the federal investments that contributed to the drug's discovery and production.

The Bureau would review that information and other factors to determine an appropriate list price. 

The legislation is one of many ideas and legislation proposed to try to bring down prescription drug prices but is one of the most drastic introduced to date.

There is bipartisan interest in lowering the cost of prescription drugs, and President TrumpDonald John TrumpBiden campaign slams Facebook after thousands of ads blocked by platform's pre-election blackout Mnuchin says he learned of Pelosi's letter to him about stimulus talks 'in the press' Harris to travel to Texas Friday after polls show tie between Trump, Biden MORE has made it a signature priority. But while Trump and lawmakers have railed against high drug prices and proposed some steps to address the issue, there have not been any major actions taken to date that have resulted in lower prices.

House Democrats are expected to vote next month on Speaker Nancy PelosiNancy PelosiMnuchin says he learned of Pelosi's letter to him about stimulus talks 'in the press' On The Money: Trump makes a late pitch on the economy | US economy records record GDP gains after historic COVID-19 drop | Pelosi eyes big COVID-19 deal in lame duck Pelosi challenger calls delay on COVID-19 relief bill the 'privilege of politics' MORE's (D-Calif.) signature bill that would let Medicare negotiate drug prices. However, Republican opposition is likely to kill the bill in the Senate.

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMnuchin says he learned of Pelosi's letter to him about stimulus talks 'in the press' On The Money: Trump makes a late pitch on the economy | US economy records record GDP gains after historic COVID-19 drop | Pelosi eyes big COVID-19 deal in lame duck Lawmakers say infrastructure efforts are falling victim to deepening partisan divide MORE (R-Ky.) has not given his support to even a more modest bipartisan drug pricing measure from Sen. Chuck GrassleyCharles (Chuck) Ernest GrassleyBarrett confirmation stokes Democrats' fears over ObamaCare On The Money: Power players play chess match on COVID-19 aid | Pelosi bullish, Trump tempers optimism | Analysis: Nearly 1M have run out of jobless benefits Grassley: Voters should be skeptical of Biden's pledge to not raise middle class taxes MORE (R-Iowa) and Sen. Ron WydenRonald (Ron) Lee WydenOn The Money: Dow falls more than 900 points amid fears of new COVID-19 restrictions | Democrats press Trump Org. about president's Chinese bank account | Boeing plans thousands of additional job cuts Democrats press Trump Organization about president's Chinese bank account Plaintiff and defendant from Obergefell v. Hodges unite to oppose Barrett's confirmation MORE (D-Ore.).

Other 2020 candidates have spoken favorably of using so-called march-in rights to break a drug company's exclusive patent and allow a cheaper version from a competitor if a drug is priced too high. 

The agency is modeled after Canada's Patented Medicine Prices Review Board, which reviews whether a medication is overpriced, comparing the cost to similar medicines in other countries. 

Updated at 8:59 a.m.