S.1587 - Fair Prescription Drug Prices for Americans Act (119th Congress)
Summary
The "Fair Prescription Drug Prices for Americans Act" (S.1587) aims to lower prescription drug costs in the United States by capping the retail list price of certain drugs and biological products. The cap would be based on the average retail list price of the same drug or biological product in Canada, France, Germany, Italy, Japan, and the United Kingdom. The Secretary of Health and Human Services would be responsible for calculating these average prices annually.
Manufacturers violating the price cap would face civil monetary penalties. The bill also mandates data collection from manufacturers regarding drug prices in the US and the aforementioned countries.
Expected Effects
If enacted, this bill would likely lead to lower prescription drug prices for American consumers. Drug manufacturers might reduce investment in research and development due to decreased profits. The bill could also lead to disputes over the accuracy of price data and the implementation of the regulations.
Potential Benefits
- Lower prescription drug costs for consumers, potentially improving access to needed medications.
- Reduced healthcare spending for individuals and the government.
- Increased affordability of life-saving drugs.
- Potential for increased price transparency in the pharmaceutical market.
- Could incentivize drug companies to focus on innovation with higher value.
Potential Disadvantages
- Potential for reduced pharmaceutical company profits, leading to decreased investment in research and development of new drugs.
- Possible drug shortages in the US if manufacturers choose to prioritize sales in other countries with higher prices.
- Challenges in accurately calculating and comparing drug prices across different countries due to varying healthcare systems and regulations.
- Potential legal challenges from pharmaceutical companies.
- Could lead to increased costs in other areas, such as increased premiums.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on regulating drug prices falls under the purview of Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3). The establishment of the Department of Health and Human Services and the delegation of authority to the Secretary are consistent with the Necessary and Proper Clause (Article I, Section 8, Clause 18).
There are no apparent conflicts with individual liberties or rights outlined in the Bill of Rights. The bill aims to promote the general welfare, as stated in the Preamble of the Constitution, by addressing the high cost of prescription drugs.
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).