S.1186 - Lower Drug Costs for Families Act (119th Congress)
Summary
S.1186, the "Lower Drug Costs for Families Act," aims to lower prescription drug costs by amending Title XVIII of the Social Security Act. The bill applies prescription drug inflation rebates to drugs furnished in the commercial market, impacting both Part B and Part D drugs. It also changes the base year for rebate calculations from 2021 to 2016.
Expected Effects
The primary effect of this bill would be to require drug manufacturers to provide rebates if their drug prices increase faster than inflation. This could lead to lower out-of-pocket costs for consumers and reduced government spending on prescription drugs. The change in the base year for rebate calculations could further amplify these effects.
Potential Benefits
- Lower prescription drug costs for individuals, particularly those on Medicare.
- Reduced government spending on prescription drugs through rebates.
- Increased affordability of essential medications, potentially improving health outcomes.
- Incentivizes drug manufacturers to restrain price increases.
- Could lead to greater price transparency in the pharmaceutical market.
Potential Disadvantages
- Drug manufacturers may reduce investment in research and development to offset rebate costs.
- Potential for drug shortages if manufacturers choose to discontinue unprofitable drugs.
- Increased administrative burden for manufacturers and government agencies.
- May not significantly impact drug prices for those with private insurance.
- Possible legal challenges from pharmaceutical companies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to legislate on matters related to healthcare and social security 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).