Get Americans the Coverage They’ve Already Paid For
Hard-working families should never have to choose between seeing a doctor and paying the rent. Healthcare is not a luxury — it’s a basic necessity for living a healthy life and raising a family with security.
But in the United States, healthcare costs are far higher than in other developed countries. A big reason for that is the bloated and fragmented structure of our healthcare system. Between insurers, drug manufacturers, hospitals, middlemen, and complex billing systems, too many layers take a cut before care ever reaches patients. Those inefficiencies drive up prices, and working families end up paying the bill through higher insurance premiums and out-of-pocket costs.
It’s time to realign our healthcare system so it works for patients and taxpayers — not just for intermediaries who profit from complexity.
The Core Principle
If American taxpayers are helping fund medical research and subsidizing healthcare coverage, Americans should receive affordable prices in return.
Public investment should mean public benefit.
Policy Proposal: Tie Public Healthcare Funding to Fair Drug Prices
As your representative, I will propose a bill that restructures how federal healthcare dollars are used so that taxpayer-funded research and subsidies come with clear, enforceable pricing agreements.
When public money helps develop a drug or support the healthcare system, the price of that drug should reflect that investment.
1. Upfront Price Negotiation for Taxpayer-Funded Drugs
When pharmaceutical companies receive federal research grants or benefit from publicly supported development, the government should negotiate fair prices at the time funding is awarded — not years later after prices are already sky-high.
This ensures that Americans aren’t paying twice: once through their taxes and again at the pharmacy counter.
2. Let Drug Manufacturers Bypass PBMs
Today, pharmacy benefit managers (PBMs) sit between drug companies, insurers, and patients, adding complexity and often driving up costs through opaque rebate systems.
Under this plan, negotiated pricing agreements would allow pharmaceutical companies to bypass PBMs and sell medications at transparent, pre-negotiated rates. Cutting out unnecessary middle layers reduces administrative waste and helps lower the price of medicines both new and already on the market.
Taxpayer investment should lead to simpler pricing — not more middlemen.
3. Pass Savings Directly to Families
Prescription drugs account for a significant share of health insurance spending. By lowering drug prices through negotiated agreements, this policy would reduce overall healthcare costs and require insurers to pass those savings on to consumers.
That means an estimated 15–20% reduction in insurance premiums for working families — real relief in monthly household budgets.
4. Transparency and Accountability
To protect patients and taxpayers:
- Pricing agreements tied to public funding would be publicly reported
- Strong oversight would prevent price gouging or abuse
- Clear rules would ensure continued investment in innovation while delivering fair prices
Why This Matters
This policy makes healthcare more affordable without cutting care or slowing innovation. It rewards medical breakthroughs while making sure the public actually benefits from the research it helps fund.
When families spend less on premiums and prescriptions:
- They are more financially secure
- Small businesses face lower coverage costs
- Communities are healthier and more stable
We’ve already paid for progress through our tax dollars. It’s time to make sure that progress pays us back with affordable healthcare.
Proposed Legislation: The TRIP Act
Taxpayer Return on Investment in Pharmaceuticals
David has drafted proposed legislation to put these principles into law. The TRIP Act requires that any pharmaceutical product developed with federal research funding be subject to fair market price negotiation. It bypasses PBM middlemen for taxpayer-funded drugs, caps prices at 200% of production cost when taxpayers funded more than half the R&D, and requires insurers to pass at least 80% of savings directly to consumers through lower premiums.
Read the Policy Brief (PDF) | Read the Full Proposed Bill (PDF)