Lower Drug Costs for Families Act

Lower Drug Costs for Families Act

This bill applies certain Medicare prescription drug rebate requirements to prescription drugs that are available under private health insurance.

Current law requires drug manufacturers to issue rebates to the Centers for Medicare & Medicaid Services for brand-name drugs without generic equivalents under Medicare that (1) cost $100 or more per year per individual, and (2) for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties.

The bill applies these requirements to prescription drugs that are available in the commercial market under private health insurance. It also indexes rebate calculations to drug prices in 2016 (as opposed to 2021).

Bill 118 HR 4115, also known as the Lower Drug Costs for Families Act, aims to address the issue of high prescription drug prices in the United States. The bill was introduced in the House of Representatives with the goal of making medications more affordable for American families.

One key provision of the bill is the establishment of a cap on out-of-pocket costs for prescription drugs under Medicare Part D. This would help protect seniors and individuals with disabilities from facing exorbitant expenses for necessary medications.

Additionally, the Lower Drug Costs for Families Act seeks to increase transparency in the pharmaceutical industry by requiring drug manufacturers to justify price increases for certain medications. This would help ensure that drug prices are reasonable and not unfairly inflated. The bill also includes measures to promote competition in the prescription drug market, such as allowing the importation of lower-cost medications from other countries and encouraging the development of generic alternatives to expensive brand-name drugs. Overall, the Lower Drug Costs for Families Act aims to address the issue of high prescription drug prices in the United States by implementing measures to make medications more affordable and accessible for American families.