H.R.3731 - Small Biotech Innovation Act (119th Congress)
Summary
H.R.3731, the Small Biotech Innovation Act, proposes an amendment to Title XI of the Social Security Act. The bill aims to create an exception for research and development-intensive small biotech manufacturers from the Medicare drug price negotiation program, starting in 2029. This exception would apply to qualifying single-source drugs developed by these manufacturers, provided they meet specific criteria related to research and development investment and company size.
Expected Effects
The bill's passage could lead to increased investment in research and development by small biotech companies. It may also result in higher drug prices for Medicare beneficiaries for certain medications. The legislation seeks to balance cost control with incentivizing innovation in the pharmaceutical sector.
Potential Benefits
- Encourages innovation and investment in research and development within small biotech companies.
- May lead to the development of new and improved treatments for various diseases.
- Could support job creation within the biotech industry.
- Provides a potential pathway for small biotech companies to remain competitive.
- Offers flexibility in Medicare drug price negotiation for specific manufacturers.
Potential Disadvantages
- May result in higher drug costs for Medicare beneficiaries for certain medications.
- Could reduce the effectiveness of the Medicare drug price negotiation program.
- Creates a potential loophole that larger companies might exploit through acquisitions.
- May disproportionately benefit certain biotech companies over others.
- Could lead to increased complexity in the Medicare drug pricing system.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote innovation and potentially improve healthcare outcomes. Congress has the power to legislate on matters related to Medicare under its enumerated powers. The bill does not appear to infringe on any specific constitutional rights or limitations.
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).