As she did during her 2008 presidential campaign, Clinton would seek to allow Medicare to use its large purchasing power to negotiate lower drug prices.
Her plan also seeks to increase competition for traditional generic versions of specialty drugs to drive down prices and offer more choices to consumers.
Clinton aides said a central component of the proposal would require health insurance plans to place a monthly limit of $250 on covered out-of-pocket prescription drug costs for individuals. The campaign estimated up to 1 million Americans could benefit from the proposal annually.
Her campaign said the proposal would seek to curb the amount of money drug companies spend on advertising and create a mandatory pre-clearance procedure through the Food and Drug Administration for advertising that would ensure the ads provide clear information to consumers.
Defending the health care law, Clinton took a swipe at Louisiana Gov. Bobby Jindal in his own backyard on Monday, saying he had left more than 190,000 people who would have been eligible for Medicaid without coverage because he declined to expand the program.
"He put ideology ahead of the well-being of the people and the families in this state," she said in Baton Rouge, Louisiana.
Jindal, who has made the repeal of the health care law a centerpiece of his Republican presidential campaign, said in an interview that it was "appropriate that the godmother of Obamacare would be in Louisiana promoting socialized medicine."
"I think that Obamacare is just a step towards more government control, more socialized medicine and I think that's bad for us," he said.