H.R.3391 - End Price Gouging for Medications Act (119th Congress)
Summary
H.R.3391, the "End Price Gouging for Medications Act," aims to lower prescription drug costs by requiring the Secretary of Health and Human Services (HHS) to establish reference prices for prescription drugs, based on the lowest retail list price among a set of reference countries. This reference price would apply to federal health programs like Medicare, Medicaid, TRICARE, and the VA system. The bill also mandates that drug manufacturers offer these reference prices to all purchasers, including uninsured individuals and those with private insurance.
Expected Effects
The bill's primary effect would be to lower prescription drug costs for consumers and federal health programs. Drug manufacturers would be compelled to comply with the reference prices or face civil penalties. These penalties would then be directed to the National Institutes of Health for drug research and development.
Potential Benefits
- Lower prescription drug costs for individuals and families.
- Reduced costs for federal health programs, potentially freeing up resources for other healthcare needs.
- Increased access to medications for uninsured individuals.
- Penalties collected from non-compliant manufacturers would fund drug research and development.
- Could incentivize drug companies to lower prices.
Potential Disadvantages
- Drug manufacturers may reduce investment in research and development due to decreased profitability.
- Some drugs may become unavailable in the US if manufacturers choose not to sell them at the reference price.
- Potential for drug shortages if manufacturers cannot meet demand at the lower prices.
- The Secretary of HHS has broad discretion in determining prices if international data is unavailable, which could lead to inconsistencies.
- The bill could face legal challenges from pharmaceutical companies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce, including the pricing of prescription drugs. The bill also relates to the General Welfare Clause (Article I, Section 8), as it aims to promote the health and well-being of citizens by making prescription drugs more affordable. However, some may argue that the price controls infringe on the Fifth Amendment's protection of private property by potentially reducing the value of pharmaceutical companies' intellectual property.
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).