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 s 1139, also known as the Lower Drug Costs for Families Act, is a piece of legislation introduced in the US Congress with the aim of reducing the financial burden of prescription drugs on American families. The bill seeks to achieve this goal through a number of key provisions.

One of the main provisions of the bill is the establishment of a cap on out-of-pocket costs for prescription drugs covered by Medicare Part D. This cap would limit the amount that individuals and families have to pay for their medications each year, providing them with greater financial security and predictability.

Additionally, the bill includes measures to increase transparency in drug pricing, requiring pharmaceutical companies to disclose information about the costs of producing and marketing their medications. This information would help to shed light on the factors driving high drug prices and empower consumers to make more informed decisions about their healthcare. Furthermore, the Lower Drug Costs for Families Act includes provisions to promote the use of generic and biosimilar drugs, which are often more affordable alternatives to brand-name medications. By encouraging the use of these lower-cost options, the bill aims to drive down overall drug spending and make prescription medications more accessible to all Americans. Overall, Bill 118 s 1139 represents a comprehensive effort to address the issue of high drug costs in the United States. If passed into law, this legislation has the potential to provide significant relief to American families struggling to afford the medications they need to stay healthy.