Category: US

Demonstrators outside PhRMA headquarters in Washington, DC, protest lobbying by pharmaceutical companies to keep Medicare from negotiating lower prescription drug prices.

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Saul Loeb/AFP via Getty Images

Demonstrators outside PhRMA headquarters in Washington, DC, protest lobbying by pharmaceutical companies to keep Medicare from negotiating lower prescription drug prices.

Saul Loeb/AFP via Getty Images

Americans pay way more than people in other countries do for prescription drugs. This drives voters crazy, and although lawmakers have been vowing to do something about it for decades, they haven’t made much progress.

That could change as soon as this week. The Inflation Reduction Act – hashed out by Senate Majority Leader Chuck Schumer, DN.Y., and Senator Joe Manchin, DW.V. – includes several provisions around drug prices and health insurance. The Senate is planning to start the voting process Saturday, and it appears on track to get through Congress and be signed into law by President Biden.

This is all music to the ears of patients who’ve been burdened by high-priced drugs for years.

“The proposal to limit out-of-pocket expenses that’s on the table right now would absolutely make a huge difference in my life,” says Medicare recipient Bob Parant, 69, of Westbury, New York. He has Type 1 diabetes and pays about $5,000 out of pocket for insulin each year, on top of thousands more for a heart medicine.

Here are details about that proposal and others in the bill, and answers to some frequently asked questions.

What exactly is Congress changing about drug prices?

For the first time, the federal health secretary would be able to directly negotiate the prices of certain expensive drugs each year for Medicare. This starts in 2026 with 10 drugs and increases to 20 drugs by 2029. To qualify for negotiation, the drugs would have to be on the market for several years.

Then there’s the proposal Parant is most excited about: People on Medicare won’t have to pay more than $2,000 a year in out-of-pocket costs for prescription drugs, which will make a big difference for seniors with certain conditions like cancer and multiple sclerosis. This would kick in in 2025.

And, starting next year, if drug companies raise the prices of their drugs faster than inflation, they’ll have to pay a rebate to Medicare. That could affect a lot of drugs – according to an analysis by the Kaiser Family Foundation; In 2019-20, half of all prescriptions covered by Medicare increased in price faster than inflation. This provision could help discourage drug companies from constantly hiking prices.

Do experts think it will make a difference?

Actually, many health policy experts think these changes are significant.

“This is a huge breakthrough,” says Tricia Neuman, who directs the Program on Medicare Policy at KFF. “Congress has been talking about doing something about drug prices for decades. [This] may not be everything everyone wants, but it really is a big deal and it will provide significant help to literally millions of people who need it.”

“It’s a huge deal,” agrees Stacie Dusetzina, professor of health policy at Vanderbilt University. “It really does break a lot of new ground and fix a lot of problems.”

The Congressional Budget Office, which analyzed an earlier version of the bill, estimates these changes will save the government $288 billion through 2031.

Why does it take so long for many of these things to kick in?

For someone who’s on Medicare and spends $10,000 a year on cancer treatment, like Neuman’s friend, the timeline of these changes might be tough to take.

“Clearly, she’ll be wondering next year, ‘Why am I still paying a lot of money?'” Neuman says. “Some things just can’t happen fast enough just because it takes a while to put things in motion.” It will take a lot of work by the federal health agencies and industry groups to get ready for these provisions to take effect.

Neuman says she understands people are anxious for relief, but once provisions like the out-of-pocket cap in Medicare do take effect, “this really will be a big deal for people who rely on expensive medication and for others who have seen their drug prices increase each year.”

I heard the bill will lead to fewer new drugs. Is that true?

This is an argument made by drugmakers to try and scare people into opposing these changes. The pharmaceutical and health products industry has spent more on lobbying Congress in 2022 than any other industry, according to the nonprofit Open Secrets. It’s fighting hard to prevent these changes from becoming law because they would cut into their profits.

For instance, PhRMA, the Pharmaceutical Research and Manufacturers of America, is making its case in an ad campaign that the drug-pricing provisions in the bill could lead to fewer new medicines coming to market by “chilling research and development.” The trade association also pointed NPR to this industry-funded analysis from Avalere, which estimates the bill could reduce drug manufacturer revenue by $450 billion by 2032.

But an analysis by the Congressional Budget Office estimates the effect on drug development would be quite modest. About 15 out of 1,300 drugs would not come to market over the next 30 years – that’s about 1% of new drugs. Also, most big drug companies spend more on marketing than on research and development.

Some ads claim Medicare would be cut. Is this true?

These ads are misleading. For example, a project dubbed Commitment to Seniors launched a seven-figure ad campaign claiming that the Senate bill would “siphon nearly $300 billion out of Medicare.” In fact, that amount of money is what the government is expected to save because Medicare won’t have to pay as much for expensive drugs, it’s not money that’s being taken away from Medicare’s budget. So, importantly, seniors’ benefits would not be cut.

“When people see an ad on TV from a group called Commitment to Seniors, that sounds pretty innocuous,” says Michael Beckel of Issue One who tracks dark money. It turns out, Commitment to Seniors is a project of another group, American Commitment, that has given PhRMA more than a million dollars, including $325,000 in 2020.

Beckel says it’s not unusual to see the industry engage in such tactics. “The pharmaceutical industry is a major lobbying force and major dark money player.”

What about insulin? Would people with diabetes get help with those prices?

Insulin is often the poster-child drug when it comes to out-of-control prices and life-or-death stakes. US insulin prices are four times higher after rebates, on average, compared with other countries, and about 1 in 4 diabetes patients have reported taking less insulin than prescribed because they can’t afford it. At this point, it’s unclear if any of the proposed reforms on the price of insulin – or at least patients’ out-of-pocket costs – will make it into the final bill.

There are ongoing efforts to cap copays at $35 a month for people with insurance who take insulin, which has bipartisan support, but this may not be included in the bill.

What else is in the bill on health?

The other big thing in the bill protects consumers from a potentially disastrous change that would happen without new legislation.

People who buy insurance on the Affordable Care Act marketplaces – like Healthcare.gov and the state marketplaces – will be able to keep generous premium subsidies for three more years. After these extra subsidies went into effect with the passage of the American Rescue Plan, the government estimated 4 out of 5 enrollees qualified for a plan with a premium of $10 or less per month.

Krutika Amin, who works with Neuman at KFF, says it’s important for lawmakers to nail down this extension now, since insurance companies are currently setting their rates for next year’s plans in advance of open enrollment in the fall.

“If Congress is able to extend the extra subsidies before the August recess, it will help provide certainty to both insurance companies and state and federal agencies who are running [the marketplaces] to be able to implement it in a way that’s seamless for consumers,” she says.

The extra discounts on plans have made a difference. Last year 14.5 million people – more than ever – signed up for insurance on Healthcare.gov, and an early analysis from HHS suggests the overall number of people who were uninsured in the US hit a record low in the first months of this year.

NPR Pharmaceuticals Correspondent Sydney Lupkin contributed reporting.

The powerful pharmaceutical industry is on the verge of a rare defeat in Congress, as Democrats say they have the votes to pass legislation targeting high drug costs.

After securing the support of Sen. Kyrsten Sinema (D-Ariz.) late Thursday, Senate Democrats appear poised to pass sweeping legislation that, among a host of climate and tax measures, would allow Medicare to negotiate the costs of some prescription drugs for the first time ever.

Democrats have sought for decades to allow Medicare to directly negotiate with drug companies as a way to bring down costs, starting with President Clinton’s ambitious health reform plan in 1993.

While relatively modest, the negotiation provision still represents a major victory for drug pricing advocates, and could give Democrats a boost heading into the midterm elections.

The idea is widely supported by voters, but the industry has long fought off any efforts to impose what they see as price controls, even amid growing bipartisan anger over high drug costs.

The legislation would allow negotiations for up to 10 of the highest cost drugs beginning in 2026, with more allowed in later years. It is expected to save the federal government more than $100 billion.

Another provision would cap out-of-pocket costs for Medicare’s prescription drug benefit at $2,000, saving seniors thousands of dollars. The legislation also aims to prevent companies from massive pricing hikes by imposing rebates on manufacturers that increase prices faster than inflation.

According to the Kaiser Family Foundation, half of all drugs covered by Medicare had price increases above the rate of inflation from 2019 to 2020.

If the legislation passes, “this is a sea change. It’s going to change the trajectory of drug prices and drug price policy in the country,” said David Mitchell, president and founder of the advocacy group Patients for Affordable Drugs.

The legislation could pass the Senate as early as this weekend, assuming that the upper chamber’s parliamentarian says that the drug pricing provisions can be included under budget reconciliation rules, which allow Democrats to bypass the 60-vote legislative filibuster.

The prescription drug plan contains the most popular provisions in the reconciliation package, according to a recent Morning Consult-Politico poll. Roughly three out of four respondents expressed support for the drug pricing measures.

But the pharmaceutical industry is on pace to break lobbying records in its effort to oppose the legislation. According to Open Secrets, the industry has spent $187 million in the first half of 2022 alone.

The industry’s largest lobbying group, the Pharmaceutical Research and Manufacturers of America (PhRMA), sent a letter to every member of Congress on Thursday to urge them to vote against the legislation.

The letter largely reiterated the longstanding argument made by the industry group that the legislation would lead to government price controls and fewer cures available to Americans.

“This bill will not provide relief for families struggling with inflation or help the average American patient afford their medicines. It will be remembered as a historic mistake that devastated patients desperate for new cures,” Stephen Ubl, president and chief executive officer of PhRMA, wrote in the letter, which was also signed by the group’s 31 board members.

During a recent briefing, Ubl said the group is assessing its options, and indicated that even if the legislation passes, the industry won’t back down.

“We’re not going to take any option off the table. We’ll examine all legislative, regulatory, legal efforts to ensure patients continue to have access to medicines and our companies have the ability to develop them,” Ubl said.

In recent years, Congress has tried to rein in drug prices without Medicare negotiation. In 2019, Sens. Chuck Grassley (R-Iowa) and Ron Wyden (D-Ore.) introduced a bipartisan drug pricing bill.

Similar to the reconciliation provisions, it would have included a cap on seniors’ out-of-pocket drug costs in Medicare, and would have limited Medicare drug price increases to the rate of inflation. But the bill was never brought up for a vote.

Congress has also looked into stopping what lawmakers decry as anti-competitive industry practices, like raising prices in lockstep with competitors or manipulating patent laws to extend market exclusivity.

But even modest legislation has been opposed by drug companies.

Rachel Sachs, a law professor at Washington University in St. Louis, said she didn’t think there would be such a strong desire for regulation if drug companies hadn’t fought against every effort.

Sachs said “industry’s own failure to rein in its worst impulses” is to blame.

“We are now in a situation that’s not sustainable for patients or payers and it’s because of their own actions,” Sachs said.

Mitchell said if the legislation passes, it would pierce the pharmaceutical lobby’s veneer of invincibility.

“I do think that this struggle has been about power, and the drug companies have struggled to keep their power to dictate prices,” Mitchell said. “The bite out of pharma from this legislation isn’t that big. It’s meaningful, but it’s not that big. But the idea that we are actually, actually curbing the power of that industry to dictate this to the American people is a very big deal.”

Arizona residents are expressing their displeasure with the billions of dollars designated for boosting IRS enforcement as part of the massive Democrat-backed social spending and taxation bill agreed to by Sen. Kyrsten Sinema, D-Ariz., late Thursday evening.

Sinema announced she would “move forward” with the bill, officially called the Inflation Reduction Act, after previously signaling changes would have to be made in order for her to agree to support it.

Fox News Digital spoke to a number of residents on the streets of Arizona to get their take on the billions in IRS funding contained within the bill. They expressed displeasure that the federal government would commit such a large amount to “go after the little guy.”

“I don’t like that to tell you the truth, that portion of it,” said resident Willis Daychild, who said that he agreed with the aims of the bill overall. “They’re going to be out there trying to find all the people that have not filed their taxes. Usually the little guy, they’re the one’s getting their hands slapped for their taxes.”

KYRSTEN SINEMA SAYS SHE WILL SUPPORT MANCHIN-SCHUMER SPENDING BILL: HERE IS WHAT ARIZONANS HAD TO SAY

Senator Kyrsten Sinema, D-Ariz., departs from the US Capitol in Washington, DC, on October 28, 2021.
(MANDEL NGAN/AFP via Getty Images)

Resident Gary Kuznia agreed, arguing the IRS would use the money to “go after” less wealthy people rather than the rich.

“No, they’re just going to go after the little guy. They really will. And they’re never going to go after the rich people. Never. Or else they would have done it already because they’re not paying their fair share of taxes right now,” he said.

“Little guys like me — you know, I’m retired, and I hate to see that. I really do. I was an accountant all my life, and I don’t want to see that. And I hope they don’t They’re going to hunt the little guy, people who make less money, and make them pay. Because they have to pay for this bill. How are they going to pay for this bill?” I have added.

Resident Richard Carrillo said he supported the bill, but appeared hesitant about the IRS funding going to increase additional auditing. “I don’t know about the audits, but if it’s going to support and help people then I say yes,” he said.

SENATE AIDES HINT AT MANCHIN DISTRESS OVER SPENDING BILL BACKLASH, DESIRE TO AVOID ‘BUILD BACK BETTER’ MENTION

This photo taken April 13, 2014 shows the headquarters of the Internal Revenue Service (IRS) in Washington.
(AP Photo/J. David Ake)

“No, no, no, not at all. I know taxes kind of make the US go round and round, but at this point there’s a lot of working class people that pay their dues, but I mean, they don’t need to be audited,” said resident Richard Carrillo. “That money can be spent somewhere else. So yeah I think that is a waste of money, giving it to the IRS so that they can give more audits and stuff like that.”

Another resident who wished to remain unnamed argued the money designated for the IRS was “too large” of an amount, and that taxes should be handled at a more local level rather than by the federal government.

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The Senate is scheduled to reconvene Saturday to vote to begin debate on the bill, which is expected to pass with the support of every Democrat.

Democrats’ sweeping economic package was narrowed somewhat on Saturday after a ruling from a top Senate rules official struck one of the provisions aimed at lowering prescription drug prices.

The Senate parliamentarian, an official who determines whether provisions meet the chamber’s complicated budget rules, struck down part of a provision that would limit drug companies’ price increases to the rate of inflation.

Senate Democrats had proposed requiring drug companies to pay rebates back to the government if their prices rose faster than the rate of inflation, both in Medicare and in the private health insurance market.

The parliamentarian allowed the provision to stand in Medicare but struck it for people with private health insurance, such as those who get coverage through their jobs, a substantial chunk of the population.

Still, as expected, the parliamentarian allowed to stand Democrats’ signature drug pricing measure, which would for the first time allow Medicare to negotiate lower drug prices on some drugs.

The parliamentarian also allowed to stand Democrats’ clean energy tax package. Other parts of the package are still awaiting rulings, including a $35 cap on what patients have to pay out of pocket for insulin.

“Democrats have received extremely good news: for the first time, Medicare will finally be allowed to negotiate prescription drug prices, seniors will have free vaccines and their costs capped, and much more,” Senate Majority Leader Charles Schumer (DN.Y.) said in a statement. “This is a major victory for the American people. While there was one unfortunate ruling in that the inflation rebate is more limited in scope, the overall program remains intact and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”

The provisions are being judged on whether they have a sufficiently substantial impact on the federal budget. The rules stem from the special procedure Democrats are using for their package to avoid a GOP filibuster called budget reconciliation.

The end result is that the drug pricing savings included in the package are even more focused on seniors on Medicare and largely do not touch people with private health insurance.

Democrats’ sweeping economic package was narrowed somewhat on Saturday after a ruling from a top Senate rules official struck one of the provisions aimed at lowering prescription drug prices.

The Senate parliamentarian, an official who determines whether provisions meet the chamber’s complicated budget rules, struck down part of a provision that would limit drug companies’ price increases to the rate of inflation.

Senate Democrats had proposed requiring drug companies to pay rebates back to the government if their prices rose faster than the rate of inflation, both in Medicare and in the private health insurance market.

The parliamentarian allowed the provision to stand in Medicare but struck it for people with private health insurance, such as those who get coverage through their jobs, a substantial chunk of the population.

Still, as expected, the parliamentarian allowed to stand Democrats’ signature drug pricing measure, which would for the first time allow Medicare to negotiate lower drug prices on some drugs.

The parliamentarian also allowed to stand Democrats’ clean energy tax package. Other parts of the package are still awaiting rulings, including a $35 cap on what patients have to pay out of pocket for insulin.

“Democrats have received extremely good news: for the first time, Medicare will finally be allowed to negotiate prescription drug prices, seniors will have free vaccines and their costs capped, and much more,” Senate Majority Leader Charles Schumer (DN.Y.) said in a statement. “This is a major victory for the American people. While there was one unfortunate ruling in that the inflation rebate is more limited in scope, the overall program remains intact and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”

The provisions are being judged on whether they have a sufficiently substantial impact on the federal budget. The rules stem from the special procedure Democrats are using for their package to avoid a GOP filibuster called budget reconciliation.

The end result is that the drug pricing savings included in the package are even more focused on seniors on Medicare and largely do not touch people with private health insurance.

Taiwan is warning that China’s recent military drills are a rehearsal for a real invasion.

The disputed island has, in recent days, been surrounded by Chinese military vessels and shows of strength on behalf of Beijing.

The Chinese Communist Party has been openly irate that a congressional delegation led by House Speaker Nancy Pelosi visited the island last week.

The delegation proceeded with the visit in direct opposition to Chinese demands that the US abort the meeting.

CHINA SANCTIONS HOUSE SPEAKER NANCY PELOSI OVER ‘EGREGIOUS PROVOCATION’ IN VISIT TO TAIWAN

In this photo provided by China’s Xinhua News Agency, a People’s Liberation Army member looks through binoculars during military exercises as Taiwan’s frigate Lan Yang is seen at the rear, on Friday, Aug. 5, 2022.
(Lin Jian/Xinhua via AP)

A fighter jet flies in the direction of Taiwan and is seen from the 68-nautical-mile scenic spot, the closest point in mainland China to the island of Taiwan, in Pingtan in southeastern China’s Fujian Province, Friday, Aug. 5, 2022.
(AP Photo/Ng Han Guan)

After Pelosi’s departure, China’s navy and air force began conducting military exercises in six zones around Taiwan with some overlapping Taiwan’s territorial waters.

The US responded by deploying several warships to the area.

US officials, including high-ranking members of President Biden’s cabinet, have acknowledged the legitimacy of China’s threats to Taiwan.

The People’s Liberation Army launched joint military operations around Taiwan island. China resolutely defends its sovereignty and territorial integrity.
(People’s Liberation Army, China)

Secretary of State Antony Blinken said China’s military exercises, including missiles the country recently fired into the Taiwan Strait and Japan’s economic zone, represent “significant escalation.”

“China has chosen to overreact and use Speaker Pelosi’s visit as a pretext to increase provocative military activity in and around the Taiwan Strait,” he told a group of reporters at the ASEAN conference on Friday.

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Japan, an ally of both Taiwan and the United States in East Asia, has voiced its own concerns.

Japanese Defense Minister Nobuo Kishi said the missiles “threatened Japan’s national security and the lives of the Japanese people, which we strongly condemn.”

US House Speaker Nancy Pelosi, front, center left, and her congressional delegation pose for a photo with Japanese Prime Minister Fumio Kishida, center right, before their breakfast meeting at the prime minister’s official residence in Tokyo Friday, Aug. 5, 2022.
(Kyodo News via AP)

A boat moves through the water at the 68-nautical-mile scenic spot, the closest point in mainland China to the island of Taiwan, in Pingtan in southeastern China’s Fujian Province, Friday, Aug. 5, 2022.
(AP Photo/Ng Han Guan)

The problem in Japan is compounded by the island nation’s lack of a formal standing military, which is outlawed by its constitution. Japan maintains a small “defense force” for protection.

China often threatens to annex Taiwan by force, if necessary, while Japan and the US continue to increase their military readiness to potentially respond to such an attack.

Fox News’ Lawrence Richards contributed to this report.

Firefighters on Friday set up lights in front of a fatal house fire in Nescopeck, Pa., that killed 10 people.

Jimmy May/Bloomsburg Press Enterprise via AP

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Jimmy May/Bloomsburg Press Enterprise via AP

Firefighters on Friday set up lights in front of a fatal house fire in Nescopeck, Pa., that killed 10 people.

Jimmy May/Bloomsburg Press Enterprise via AP

NESCOPECK, Pa. — Fire tore quickly through a house in northeastern Pennsylvania early Friday morning, killing seven adults and three children and horrifying a volunteer firefighter who arrived to battle the blaze only to discover the victims were his own family, authorities said.

The children who died were ages 5, 6 and 7, Pennsylvania State Police said in a news release, while the seven adults ranged from their late teens to a 79-year-old man. Autopsies were planned for this weekend.

Harold Baker, a volunteer firefighter in the town of Nescopeck, said the 10 victims included his son, daughter, father-in-law, brother-in-law, sister-in-law, three grandchildren and two other relatives. He said his two children of him and the other young victims were visiting their aunt and uncle’s home for swimming and other summertime fun.

He said 13 dogs were also in the two-story home, but didn’t say if he knew whether any survived.

“All I wanted to do was go in there and get to these people, my family. That’s all that I was thinking about, getting in to them,” Baker said in a phone interview with The Associated Press.

Baker grabbed a hose and air pack, and started pouring water on the fire, desperate to make his way inside and calling out to his son. His chief realized whose house it was, and fellow firefighters escorted Baker back to the firehouse.

A preliminary investigation suggests the fire broke out on the front porch at around 2:30 am, Luzerne County District Attorney Sam Sanguedolce said Friday evening.

“The information I have is that the fire started and progressed very quickly, making it very difficult to get out,” he said.

Three people were able to escape the blaze, Sanguedolce said. Four state police fire marshals are involved in the investigation, although it won’t be classified as a criminal probe unless they determine the fire was intentionally set, he said.

Nescopeck is a small town on the Susquehanna River, about 20 miles southwest of Wilkes-Barre. The house was on a residential street of largely owner-occupied, single family homes.

Baker said the address initially given for the call was a neighboring house. I realized it was his family members’ residence as the firetruck approached. He said his unit was the first on scene, and the house was already engulfed in flames.

“There wasn’t anything we could’ve done to get in there. We tried, but we couldn’t get in,” said Baker, 57, who’s been a firefighter for 40 years.

His son, 19-year-old Dale Baker, had followed both of his parents into the fire service, joining when he was 16.

“He said it all his life, he was just going to be like his dad,” Harold Baker said.

Heidi Knorr, the Nescopeck Volunteer Fire Company secretary, called Dale Baker “such a fun-loving soul. He just loved life.”

The family was “always willing to help lend a hand to anyone in need,” Knorr said. Dale’s mother was not among the dead listed by Harold Baker.

Mike Swank, who lives two doors away across the street, said he happened to be awake early Friday and looked outside after hearing a sharp explosion. He saw the porch “was really going” and went outside, using another neighbor’s hose to keep the blaze from spreading to a garage.

“I saw two guys outside and they were in various states of hysteria,” Swank told the AP by phone.

One man was on a cellphone, “and I’m trying to ask him if everybody’s out,” he said. “The other guy was out in the street and he was just running around in circles.”

Swank said he wasn’t able to get information from them. A fence prevented him from getting to the back of the property.

Baker said 14 people were living in the home. One was out delivering newspapers, and three others escaped.

Swank said the family had moved in a few months ago under what he understood to be a rent-to-own agreement, and spent a lot of time on the cluttered front porch.

“It was so quick and so much smoke, you just knew nobody was going to make it out,” Swank said. He saw cadaver dogs being used to search the scene until the bodies were located.