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SMART Prices Act
3/13/2024, 12:09 AM
Summary of Bill S 1264
The SMART Prices Act aims to increase transparency in the pharmaceutical industry by requiring drug manufacturers to justify price increases for certain medications. Under this bill, pharmaceutical companies would be required to provide detailed information on the costs associated with producing and marketing their drugs, as well as the research and development expenses that went into creating them.
Additionally, the SMART Prices Act would empower the Department of Health and Human Services to review and approve price increases for certain prescription drugs. This would help to ensure that drug prices are reasonable and justified, and prevent pharmaceutical companies from engaging in price gouging. Overall, the SMART Prices Act is designed to protect consumers from exorbitant prescription drug prices and promote greater accountability in the pharmaceutical industry. By increasing transparency and oversight, this bill aims to make medications more affordable and accessible to all Americans.
Congressional Summary of S 1264
Strengthening Medicare And Reducing Taxpayer Prices Act or the SMART Prices Act
This bill modifies requirements of the Medicare Drug Price Negotiation Program and makes other changes with respect to the prices of prescription drugs under Medicare.
Current law requires the Centers for Medicare & Medicaid Services (CMS) to negotiate maximum prices for brand-name drugs that do not have other generic equivalents and that account for the greatest Medicare spending. The CMS must negotiate the prices of 10 drugs that are covered under the Medicare prescription drug benefit in 2026, 15 drugs that are covered under the Medicare prescription drug benefit in 2027, 15 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2028, and 20 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2029 and each year thereafter.
The bill requires the CMS to negotiate the prices of 20 drugs under the Medicare prescription drug benefit in 2026 and 40 drugs under the Medicare prescription drug benefit or under Medicare medical services in 2027 and each year thereafter. It also (1) shortens the required period of market approval from 7 years and 11 years for drugs and biologics, respectively, to 3 years; and (2) modifies the ceiling for the maximum fair price for short-, extended-, and long-monopoly drugs.
The bill also repeals provisions that prohibit the CMS from interfering in negotiations between drug manufacturers, pharmacies, and PDP sponsors (i.e., noninterference clause).
