S.1930 - Small Biotech Innovation Act (119th Congress)
Summary
S.1930, the Small Biotech Innovation Act, aims to amend Title XI of the Social Security Act. The amendment seeks to establish an exception from the Medicare drug price negotiation program for research and development-intensive small biotech manufacturers. This exception would apply starting in 2029.
Expected Effects
The bill, if enacted, would exempt certain small biotech companies from Medicare drug price negotiations. This could lead to higher drug prices for Medicare beneficiaries for drugs produced by these companies. However, it could also incentivize continued investment in research and development by these smaller manufacturers.
Potential Benefits
- Encourages Innovation: The exception may incentivize small biotech companies to continue investing in research and development, potentially leading to new and improved treatments.
- Supports Small Businesses: The bill aims to protect small biotech manufacturers from the potential negative impacts of drug price negotiation.
- Attracts Investment: By providing a more favorable regulatory environment, the bill could attract investment in the biotech sector.
- Maintains Drug Availability: The exception could help ensure that small biotech companies continue to produce and make available specialized drugs.
- Promotes Competition: By supporting smaller players, the bill could foster greater competition in the pharmaceutical market.
Most Benefited Areas:
Potential Disadvantages
- Higher Drug Prices: Medicare beneficiaries may face higher drug prices for medications produced by exempted small biotech manufacturers.
- Reduced Cost Savings for Medicare: The exception could limit the potential cost savings from the Medicare drug price negotiation program.
- Potential for Abuse: The definition of "research and development-intensive" could be subject to manipulation or gaming by companies.
- Complexity: The bill introduces a complex set of definitions and criteria, potentially increasing administrative burden.
- Uncertainty: The long-term effects of the exception on drug prices and innovation are uncertain.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to fall under the purview of Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3) and to provide for the general welfare (Article I, Section 8, Clause 1). The bill does not appear to infringe upon any specific constitutional rights or limitations. The establishment of exceptions and definitions within the bill is a legislative function.
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).