S.1818 - Prescription Drug Price Relief Act of 2025 (119th Congress)
Summary
The Prescription Drug Price Relief Act of 2025 (S.1818) aims to lower prescription drug prices in the United States by ending government-granted monopolies for manufacturers charging prices higher than the median prices in other countries. The bill mandates the Secretary of Health and Human Services to identify excessively priced drugs based on international reference pricing and other factors. It also allows for the granting of open, non-exclusive licenses for generic drug or biosimilar versions of excessively priced drugs.
Expected Effects
The bill would likely lead to lower prescription drug prices for consumers by increasing competition and removing market exclusivity for certain drugs. This could also affect pharmaceutical companies' revenue and research and development investments. The Act also establishes a public database of excessively priced drugs and requires manufacturers to report pricing and cost information.
Potential Benefits
- Reduced prescription drug costs for patients.
- Increased access to affordable medications.
- Greater transparency in drug pricing.
- Promotion of generic drug and biosimilar competition.
- Potential savings for federal healthcare programs.
Potential Disadvantages
- Potential reduction in pharmaceutical company profits, which could impact research and development.
- Possible legal challenges from pharmaceutical companies.
- Complexity in determining reasonable royalty rates for open licenses.
- Risk of drug shortages if manufacturers are unwilling to produce drugs under the new licensing terms.
- Potential for unintended consequences on the availability of innovative drugs.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8, Clause 3) and to promote the general welfare (Preamble). The bill does not appear to infringe on individual rights or freedoms protected by the Bill of Rights. The Act aims to address market failures in the pharmaceutical industry, which is a legitimate goal under the Commerce Clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).