Effects of Drug Price Negotiation Stemming From Title 1 of H.R. 3, the Lower Drug Costs Now Act of 2019, on Spending and Revenues Related to Part D of Medicare

The Congressional Budget Office and the staff of the Joint Committee on Taxation (JCT) have been analyzing the effects of H.R. 3, the Lower Drug Costs Now Act of 2019, as introduced on September 19, 2019. This letter describes a preliminary estimate of the effects of title I of the bill on federal direct spending and revenues related to Part D of Medicare, the outpatient drug benefit. CBO is working on analyses of other effects of that title and of other titles of the bill, but that work is not complete.