What does Preamble of End Price Gouging for Medications Act do?

This bill, formally titled 'To require the Secretary of Health and Human Services to establish reference prices for prescription drugs for purposes of Federal health programs, and for other purposes,' aims to direct the Secretary of Health and Human Services to establish reference prices for prescription drugs. The bill's stated purpose is to establish reference prices for prescription drugs within Federal health programs.

What does SHORT TITLE. of End Price Gouging for Medications Act do?

This bill is formally titled the 'End Price Gouging for Medications Act'.

What does REFERENCE PRICES FOR PRESCRIPTION DRUGS. of End Price Gouging for Medications Act do?

This section establishes annual reference prices for prescription drugs, to be determined by the Secretary of Health and Human Services. The reference price for a drug shall not exceed the retail list price for enrollees or beneficiaries in specified federal health programs. The Secretary will determine reference prices based on the lowest retail list price in at least three reference countries (Australia, Austria, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom), or, if data is unavailable, on factors like therapeutic effect, value, patient access, and research and development costs. The reference prices apply to Medicare, Medicaid, CHIP, TRICARE, VA health care, Federal Employees Health Benefits Program, and health programs funded under the Indian Health Care Improvement Act. Drug manufacturers are required to offer prescription drugs at the reference price to all individuals, including those without insurance. Drug manufacturers who fail to comply with the reference price requirements are subject to a civil penalty equal to five times the difference between the amount received and what would have been received if they complied. Civil penalties collected will be transferred to the National Institutes of Health for drug research and development.

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End Price Gouging for Medications Act

Last updated: 5/14/2025 · Introduced: 5/14/2025

Author: Jeff Merkley (D-OR)

TL;DR (AI)

This bill directs the Secretary of Health and Human Services to establish annual reference prices for prescription drugs within federal health programs, based on prices in select countries or other factors.
Drug manufacturers must offer prescription drugs at these reference prices to all individuals, regardless of insurance status.
Manufacturers who fail to comply with the reference price requirements face civil penalties, with collected funds directed towards drug research and development.

119th Congressin committeeHR. 3391(In Committee)Official page

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Other Sections

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

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