Pelosi drug plan would save $370B, but could reduce R&D, forecasters say

House Speaker Nancy Pelosi's plan to require direct price negotiation between the federal government and the pharmaceutical sector would reduce Medicare drug spending by $369 billion over a decade, according to a new estimate from the Congressional Budget Office.

If the bill becomes law, drugmakers are likely to push back by raising list prices and reducing research and development spending, which in turn could lead to a reduction in the number of new drugs coming to market by as many as 15, CBO forecasters predicted.