Medicare Drug Price Negotiation Act
- Last Action
- 9/25/2019
Actions
- 2019-09-25Subcommittee Hearings Held.
- 2019-01-25Referred to the Subcommittee on Health.
- 2019-01-10Referred to the Subcommittee on Health.
- 2019-01-10Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2019-01-10Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2019-01-10Introduced in House
- 2019-01-10Introduced in House
CRS Summary
As of 2019-01-10 (00)
Medicare Drug Price Negotiation Act
This bill makes a series of changes relating to the prices of prescription drugs under the Medicare prescription drug benefit and Medicare Advantage (MA) prescription drug plans (PDPs).
Under current law, the Centers for Medicare & Medicaid Services (CMS) may neither negotiate the prices of covered drugs nor establish a formulary. The bill repeals these restrictions and instead specifically requires the CMS to (1) negotiate the prices of covered drugs; and (2) either establish a formulary for covered drugs, or require changes to PDP formularies that take into account CMS negotiations.
If the CMS is unable to negotiate an appropriate price for a drug in accordance with certain criteria, the price must be the lowest of three specified options (e.g., the average price in other countries). The CMS must identify drugs that are subject to negotiation, with priority given to certain categories of drugs based on usage and cost.
Additionally, drug manufacturers must issue rebates to the CMS for drugs dispensed to eligible low-income individuals. Subject to civil monetary penalties, a Medicare or MA PDP sponsor must report, both to drug manufacturers and to the CMS, specified information related to the determination and payment of such rebates.
Cosponsors (20)
- Peter Welch (D-VT)
- LLOYD DOGGETT (D-TX)
- Sean Maloney (D-NY)
- Mark Pocan (D-WI)
- ROSA DELAURO (D-CT)
- Tulsi Gabbard (D-HI)
- Suzanne Bonamici (D-OR)
- Ilhan Omar (D-MN)
- Ro Khanna (D-CA)
- ELEANOR NORTON (D-DC)
- Pramila Jayapal (D-WA)
- JANICE SCHAKOWSKY (D-IL)
- Brian Higgins (D-NY)
- Joe Neguse (D-CO)
- Steve Cohen (D-TN)
- Raja Krishnamoorthi (D-IL)
- Rashida Tlaib (D-MI)
- Mark DeSaulnier (D-CA)
- Debra Haaland (D-NM)
- Jamie Raskin (D-MD)
Subjects
- Congressional oversight
- Government information and archives
- Government studies and investigations
- Health care costs and insurance
- Inflation and prices
- Medicaid
- Medicare
- Prescription drugs
- Public contracts and procurement
- Retail and wholesale trades
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.