S.1753 - End Price Gouging for Medications Act (119th Congress)
Summary
The "End Price Gouging for Medications Act" (S.1753) 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 group of reference countries. This reference price would apply to federal health programs, and drug manufacturers would be required to offer prescription drugs at the reference price to all individuals, including the uninsured. Non-compliance would result in civil penalties, with collected funds directed to the National Institutes of Health (NIH) for drug research and development.
Expected Effects
If enacted, this bill would likely lead to lower prescription drug costs for consumers and federal health programs. It could also incentivize drug manufacturers to lower their prices to align with international benchmarks. The bill could also lead to increased funding for drug research and development through the NIH.
Potential Benefits
- Lower prescription drug costs for individuals and federal health programs.
- Increased access to medications for uninsured individuals.
- Potential for increased funding for drug research and development through civil penalties.
- Alignment of drug prices with international standards.
- Reduced financial burden on patients with chronic conditions.
Potential Disadvantages
- Potential for drug manufacturers to reduce investment in research and development due to decreased profitability.
- Possible drug shortages if manufacturers choose not to sell certain drugs at the reference price.
- Challenges in determining appropriate reference prices for drugs with limited international pricing data.
- Potential legal challenges from drug manufacturers.
- Bureaucratic hurdles in implementing and enforcing the reference pricing system.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on healthcare falls under Congress's power to provide for the general welfare (Preamble). The regulation of drug prices could be argued under the Commerce Clause (Article I, Section 8), as it involves interstate commerce. However, challenges could arise if the regulations are seen as unduly infringing on the rights of pharmaceutical companies. The bill does not appear to infringe on any specific individual rights outlined in the Bill of 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).