Rising care costs According tothe CBO, the result of the proposal would be huge savings totaxpayers, and far-reaching effects in the pharmaceutical industry.(Photo: Shutterstock)

(Bloomberg) –A drug-price proposal from Democrats in Congresswould save taxpayers $345 billion over a seven-year period,according to a new estimate, punching a hole in pharmaceuticalcompany sales and causing ripple effects in health care systemsaround the world.

The bill, H.R. 3, is backed by Speaker of the House Nancy Pelosiand other Democrats in the chamber. It would direct Medicare, theU.S. government health program for the elderly and disabled, to setpharmaceutical prices based on an index of what other developednations pay for top-selling drugs. For products not sold abroad,the government would set their price at a discount to what U.S.purchasers paid.

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