To amend titles XVIII and XIX of the Social Security Act to provide that priority research drugs shall not be treated as line extensions of existing drugs for purposes of calculating manufacturer rebates under the Medicare and Medicaid programs, and for other purposes.

4/3/2025, 1:57 PM

Summary of Bill HR 2542

Bill 119 hr 2542 aims to make changes to the Social Security Act, specifically titles XVIII and XIX, in order to ensure that priority research drugs are not considered as line extensions of existing drugs when calculating manufacturer rebates under the Medicare and Medicaid programs. This bill seeks to prioritize innovative and potentially life-saving medications by preventing them from being grouped together with older, less effective drugs for rebate purposes.

The main goal of this legislation is to incentivize pharmaceutical companies to invest in research and development of new drugs that could significantly improve patient outcomes and quality of life. By excluding priority research drugs from the rebate calculations, manufacturers would be more likely to focus on developing cutting-edge treatments rather than simply modifying existing medications.

Overall, Bill 119 hr 2542 aims to promote innovation in the pharmaceutical industry and ensure that patients have access to the most advanced and effective medications available. This bill could have a significant impact on the healthcare system by encouraging the development of groundbreaking treatments that could potentially save lives and improve overall public health.

Current Status of Bill HR 2542

Bill HR 2542 is currently in the status of Bill Introduced since April 1, 2025. Bill HR 2542 was introduced during Congress 119 and was introduced to the House on April 1, 2025. Bill HR 2542's most recent activity was Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. as of April 1, 2025

Bipartisan Support of Bill HR 2542

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Policy Area and Potential Impact of Bill HR 2542

Primary Policy Focus

Alternate Title(s) of Bill HR 2542

To amend titles XVIII and XIX of the Social Security Act to provide that priority research drugs shall not be treated as line extensions of existing drugs for purposes of calculating manufacturer rebates under the Medicare and Medicaid programs, and for other purposes.