Medicare Negotiation and Competitive Licensing Act of 2021

Medicare Negotiation and Competitive Licensing Act of 2021

This bill establishes several requirements relating to the prices of prescription drugs.

Specifically, the bill requires the Centers for Medicare & Medicaid Services (CMS) to negotiate with pharmaceutical companies regarding prices for drugs covered under Medicare. (Current law prohibits the CMS from doing so.) If the CMS is unable to negotiate the price of a drug, such drug is subject to competitive licensing in order to further its sale under health insurance programs, notwithstanding existing government-granted exclusivities.

The negotiated prices also apply to other federal health care programs, private health insurance, and the uninsured; pharmacies that charge more than the negotiated price for uninsured individuals are subject to civil penalties. Manufacturers must also comply with specified reporting requirements relating to prices and licensing, subject to civil penalties.

The bill also institutes an excise tax on drugs for which the price spikes beyond a certain limit, subject to specified exemptions, as well as on drugs for which the price exceeds the negotiated price.

Bill 117 HR 4811, also known as the Medicare Negotiation and Competitive Licensing Act of 2021, is a piece of legislation introduced in the US Congress. The main goal of this bill is to allow the Secretary of Health and Human Services to negotiate prices for certain drugs covered under Medicare Part D. This negotiation process would aim to lower drug prices for Medicare beneficiaries and reduce overall healthcare costs.

Additionally, the bill proposes the establishment of a competitive licensing program for certain drugs that have a significant impact on public health. This program would allow for the issuance of licenses to generic drug manufacturers, enabling them to produce and sell these drugs at a lower cost. This would increase competition in the pharmaceutical market and further drive down prices for consumers.

Overall, the Medicare Negotiation and Competitive Licensing Act of 2021 seeks to address the rising costs of prescription drugs and make healthcare more affordable for seniors and other Medicare beneficiaries. It aims to achieve this through a combination of price negotiation and increased competition in the pharmaceutical industry.