S.527 - Prescription Pricing for the People Act of 2025 (119th Congress)
Summary
S.527, the Prescription Pricing for the People Act of 2025, directs the Federal Trade Commission (FTC) to study the role of intermediaries, particularly pharmacy benefit managers (PBMs), in the pharmaceutical supply chain. The bill requires the FTC to report to Congress on anti-competitive practices and provide policy recommendations to improve transparency and competition. The goal is to ensure consumers benefit from cost savings and efficiencies in the prescription drug market.
Expected Effects
The likely effect of this bill is increased scrutiny of PBM practices and potential legislative action to address anti-competitive behavior. This could lead to greater transparency in drug pricing and potentially lower prescription drug costs for consumers. The FTC's recommendations could shape future regulations and enforcement efforts in the pharmaceutical industry.
Potential Benefits
- Increased transparency in the pharmaceutical supply chain.
- Potential reduction in prescription drug costs for consumers.
- Identification and prevention of anti-competitive practices by PBMs.
- Improved understanding of the role of intermediaries in drug pricing.
- Development of policy recommendations to enhance competition in the pharmaceutical market.
Most Benefited Areas:
Potential Disadvantages
- The study and reporting process could take time, delaying potential reforms.
- The FTC's recommendations may not be fully implemented by Congress.
- The bill focuses primarily on PBMs and may not address other factors contributing to high drug prices.
- There is no guarantee that increased transparency will automatically lead to lower prices.
- The bill does not directly address the high cost of drug development or patent protection.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By addressing the pharmaceutical supply chain, which involves interstate transactions, the bill falls within Congress's authority. The bill also aligns with the general welfare clause as it aims to improve healthcare access and affordability.
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).