H.R.3493 - Global Fairness in Drug Pricing Act (119th Congress)
Summary
H.R.3493, the "Global Fairness in Drug Pricing Act," aims to lower prescription drug prices in the United States by aligning them with international benchmarks. The bill mandates the Secretary of Health and Human Services (HHS) to propose a rulemaking plan for most-favored-nation price targets for pharmaceutical manufacturers. It also directs HHS to certify that drug importation poses no public health risk and to facilitate direct-to-consumer purchasing programs.
Additionally, the bill requires the Attorney General and the Federal Trade Commission (FTC) to take enforcement action against anticompetitive practices by pharmaceutical manufacturers. The Secretary of Commerce and the United States Trade Representative are tasked with studying whether manufacturers engage in unreasonable or discriminatory behavior that harms national security or forces U.S. patients to subsidize global research and development.
The bill was introduced in the House of Representatives and referred to the Committees on Energy and Commerce, Ways and Means, and the Judiciary.
Expected Effects
If enacted, H.R.3493 would likely lead to lower prescription drug prices for American consumers. This would be achieved through international price benchmarking, increased drug importation, and enforcement against anticompetitive practices.
The bill could also impact pharmaceutical manufacturers' profits and research and development investments. The study on manufacturer behavior could lead to further policy changes based on its findings.
Potential Benefits
- Lower prescription drug costs for American patients.
- Increased access to affordable medications.
- Greater competition among pharmaceutical manufacturers.
- Potential for increased transparency in drug pricing.
- Reduced financial burden on individuals and healthcare systems.
Potential Disadvantages
- Potential decrease in pharmaceutical companies' revenue, possibly affecting research and development.
- Possible challenges in ensuring the safety and quality of imported drugs.
- Potential legal challenges from pharmaceutical manufacturers.
- Risk of drug shortages if manufacturers reduce production.
- Concerns about the impact on innovation in the pharmaceutical industry.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the U.S. Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8) and to provide for the general welfare of the United States. The Commerce Clause grants Congress the authority to regulate interstate and international trade, which includes the regulation of drug pricing and importation.
The bill also tasks the executive branch with implementing and enforcing its provisions, which aligns with the President's duty to execute the laws (Article II, Section 3). The study on manufacturer behavior falls under Congress's power to conduct investigations necessary for informed legislation.
However, potential legal challenges could arise under the Fifth Amendment's Takings Clause if the price controls are deemed to unfairly deprive pharmaceutical companies of their property. The Tenth Amendment could also be invoked if the federal government's actions are seen as unduly infringing on states' rights.
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).