Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Senate Majority Leader Chuck Schumer addresses reporters on Tuesday. Photo: Mandel Ngan/AFP via Getty Images

Senate Majority Leader Chuck Schumer announced Tuesday that Democrats have reached a deal on lowering Medicare prescription drug prices — an omission that had stalled support for President Biden's $1.75 trillion social spending plan.

Why it matters: Democrats have run on lowering drug prices for years. If the agreement is finalized, it'll allow them to tell voters that they've fulfilled their promise.

What they're saying: “For a generation, House Democrats have been fighting to deliver real drug price negotiations that will lower costs," House Speaker Nancy Pelosi said in a statement.

  • "With today’s agreement on strong lower drug price provisions for the Build Back Better Act, Democrats have a path forward to make good on this transformational agenda for our seniors."

State of play: Sen. Kyrsten Sinema (D-Ariz.), a key Democratic holdout to getting this provision in the bill, released a statement shortly after Schumer's announcement saying that she's on board.

  • Sinema met Pelosi — who was trying to rescue the drug pricing components of the package — beginning Friday, Punchbowl's Jake Sherman first reported and Axios has confirmed.
  • The House and the Senate worked all weekend to hammer out the deal, which was clinched shortly after noon Tuesday when Pelosi and Sinema spoke.

Details: The emerging framework of the deal would allow Medicare negotiations in Parts B and D, limit how much drug companies can increase the prices of drugs already on the market and restructure the Part D benefit to lower seniors' out-of-pocket costs.

  • The cap on price hikes would apply "not just for seniors but for all Americans," Pelosi said, suggesting the caps extend to the commercial market.
  • Seniors would pay no more than $2,000 out-of-pocket for drugs covered by Part D. There would also be caps on out-of-pocket insulin prices, Schumer said.

Yes, but: The number and type of drugs subject to negotiations would be limited. One draft framework circulating among lobbyists and reporters Tuesday morning said Medicare would negotiate the prices of 10 drugs in 2025, but that number would increase to 30 drugs in 2028.

  • Drugs that are still covered by their initial FDA-granted exclusivity period would be exempt from negotiations, according to the draft framework, although the time frame may have changed in the final deal.
  • Drugs earn their maximum profits during that exclusive period that precedes cheaper generic versions coming to market.
  • Limiting eligible drugs helps alleviate concerns Medicare negotiations would reduce drugmakers' financial incentives to develop new drugs.

The bottom line: The drug pricing policy may not be as aggressive as many Democrats had hoped, but if it becomes law, it will still be historic.

Go deeper

Ben Geman, author of Generate
Nov 22, 2021 - Politics & Policy

The murky future of Biden's climate agenda in the Senate

Illustration: Allie Carl/Axios

House Democrats passed their $1.75 trillion social spending and climate package last week, but what happens next is hazy.

Why it matters: The bill, if it makes the finish line, would be by far the most sweeping U.S. climate package ever enacted.

Biden administration makes first move on data privacy

Illustration: Sarah Grillo/Axios

The Biden administration is launching its first big effort on privacy policy by looking at how data privacy issues affect civil rights.

Why it matters: An administration perspective on privacy policy could be key in developing a long-awaited national privacy law by putting the White House stamp on how to regulate privacy.

Axios Investigates

Exclusive: Airbnb hosts Xinjiang rentals on land owned by sanctioned group

Data: Axios research, Airbnb, Australia Strategic Policy Institute's International Cyber Policy Centre; Map: Jacque Schrag/Axios

Airbnb has more than a dozen homes available for rent in China's Xinjiang region on land owned by an organization sanctioned by the U.S. government for complicity in genocide and forced labor, an Axios investigation has found.

Why it matters: The listings expose Airbnb to regulatory risk under U.S. law. They also land yet another American tech company in the crossfire between the U.S. and China.