H.R. 3, “The Lower Drug Costs Now Act of 2019

Jonathan Keisling, Health Care Policy Analyst

H.R. 3, “The Lower Drug Costs Now Act of 2019,” requires manufacturers to negotiate the price of certain drugs with the Secretary of Health and Human Services, and if the manufacturer does not comply, the bill would impose an excise tax on the sales of the manufacturer. This tax has been portrayed as equaling a percentage of sales that ranged from 65 percent for the first 90 days of non-compliance to 95 percent for any period greater than 270 days. These rates, however, do not accurately reflect the penalty that will be assessed. These rates are proportions that are then used to determine the actual tax rates. These rates range from 186 percent of sales for the first 90 days of non-compliance to 1,900 percent of sales after 270 days of non-compliance.

https://www.americanactionforum.org/weekly-checkup/parsing-the-competing-narratives-on-the-affordable-care-act/#ixzz63fOhFG62
Follow @AAF on Twitter