Illustration: Aïda Amer/Axios

A draft of House Speaker Nancy Pelosi's drug pricing plan obtained by Bloomberg Law confirms that she's working on an aggressive proposal that would give the government vast new authority.

Between the lines: The proposal would give Medicare the authority to negotiate the prices of 250 drugs, limit how high these prices could be based on how much other countries pay, and establish harsh penalties for drugmakers who refuse to comply.

  • This largely aligns with what my colleague Sam Baker reported last weekend.
  • "The document is an out of date draft. Nothing is being distributed to the Caucus yet because the Committees are still discussing," said a senior Democratic aide.

Details: Pelosi's plan would...

  • Allow the HHS secretary to negotiate the prices of the most expensive 250 drugs without at least 2 competitors. This price would be available to all payers, not just Medicare beneficiaries.
  • Set the maximum price of a drug at 1.2 times what other wealthy countries pay for it.
  • Steeply fine drug companies if they don't participate in the negotiation process or abide by the agreed-on price.
  • Require drug companies that have raised the price of drugs covered by Medicare by more than the inflation rate since 2016 to either lower the price or pay a rebate to the government.

What we're watching: Whether the White House shows any interest in a plan this aggressive — which would be dead on arrival in a traditional GOP administration.

Go deeper: The Trump-Pelosi mind meld on drug costs

Go deeper

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U.S. policy shift will allow taxpayer funding for projects in West Bank settlements

Friedman (L) with Netanyahu. Photo: Menahem Kahana/AFP via Getty Images

The U.S. and Israel will announce tomorrow that they are expanding three agreements on scientific cooperation to include Israeli settlements in the West Bank, Israeli and U.S. officials tell me.

Why it matters: This is a substantial policy shift for the U.S., which did not previously allow its taxpayers' money to be spent in the Israeli settlements.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

McConnell: Confirming Amy Coney Barrett will help GOP retain Senate

Photo: Samuel Corum/Getty Images

Senate Majority Leader Mitch McConnell (R-Ky.) expressed no regrets about Judge Amy Coney Barrett's controversial confirmation, telling Politico in an interview that he believes the decision to place her on the Supreme Court just a week before the election will help Republicans retain the Senate.

Why it matters: With a week to go until Election Day, many Republicans are concerned that President Trump's unpopularity could cost them the Senate. McConnell has long viewed the transformation of the federal judiciary through the confirmation of young conservative judges as his defining legacy.