Kevin Brady: “I include in the Record a letter from the Congressional Budget Office, which confirms this bill will actually increase…”

“I include in the Record a letter from the Congressional Budget Office, which confirms this bill will actually increase the cost of new drugs. U.S. Congress, Congressional Budget Office, Washington, DC, August 4, 2022. Re Additional Information About Prescription Drug Legislation Hon. Jason Smith, Ranking Member, Committee on the Budget, U.S. House of Representatives, Washington, DC. Dear Congressman: This letter provides additional information that you and your colleagues requested about subtitle I of the reconciliation recommendations of the Senate Committee on Finance regarding prescription drug legislation. You asked about how provisions involving inflation rebates and the negotiation of drug prices would affect launch prices for new drugs and the introduction of new generic drugs. You also asked how a provision to stabilize premiums as a part of the redesign of Medicare's benefits would affect the federal budget and premiums. Effect of the Inflation-Rebate and Negotiation Provisions on Launch Prices The Congressional Budget Office projects that the inflation-rebate and negotiation provisions would increase the launch prices for drugs that are not yet on the market relative to what such prices would be otherwise. That effect would primarily be driven by the inflation-rebate provisions (sections 129101 and 129102), which would begin to apply to prices within 12 months of a given drug's entering the market.…”