What does Preamble of Lower Drug Costs for Families Act do?

This bill, formally titled 'To amend title XVIII of the Social Security Act to apply prescription drug inflation rebates to drugs furnished in the commercial market and to change the base year for rebate calculations,' aims to modify the Social Security Act. The proposed legislation intends to apply prescription drug inflation rebates to drugs provided in the commercial market. The bill also seeks to change the base year used for calculating these rebates.

What does SHORT TITLE. of Lower Drug Costs for Families Act do?

This bill is formally titled the Lower Drug Costs for Families Act.

What does APPLICATION OF PRESCRIPTION DRUG INFLATION REBATES TO DRUGS of Lower Drug Costs for Families Act do?

This section amends Section 1847A(i) of the Social Security Act to modify the application of prescription drug inflation rebates to drugs furnished in the commercial market under Part B. The amendments change references to 'units' to 'billing units' in several paragraphs. The calculation of the total number of billing units for Part B rebatable drugs is revised, incorporating a methodology similar to existing processes. Base years for rebate calculations are adjusted, changing dates from 2021 to 2016 in various subparagraphs. The amendments specify that these changes to Part B apply with respect to calendar quarters beginning on or after January 1, 2026. This section also amends Section 1860D-14B of the Social Security Act, concerning Part D drugs, to adjust rebate calculations. The calculation of the total number of units used to calculate the average manufacturer price (AMP) for Part D rebatable drugs is modified, excluding certain units. The section revises reporting requirements and processes related to AMP reports. Base years for rebate calculations under Part D are also changed from 2021 to 2016. The amendments related to Part D apply with respect to applicable periods beginning on or after October 1, 2025.

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Lower Drug Costs for Families Act

Last updated: 3/27/2025 · Introduced: 3/27/2025

Author: Catherine Cortez Masto (D-NV)

TL;DR (AI)

This bill modifies how prescription drug inflation rebates are calculated for drugs provided under Medicare Parts B and D.
The legislation changes the base year used to calculate these rebates from 2021 to 2016 for both Part B and Part D drugs.
The bill revises the methodology for calculating billing units and average manufacturer prices (AMP) for rebatable drugs within Medicare programs.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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