II 

118TH CONGRESS 

1ST SESSION S. 1264 

To amend title XVIII of the Social Security Act to strengthen the drug 

pricing reforms in the Inflation Reduction Act. 

IN THE SENATE OF THE UNITED STATES 

APRIL 25, 2023 

Ms. KLOBUCHAR (for herself, Mr. WELCH, Mrs. GILLIBRAND, Mr. HEINRICH, 

Mr. MERKLEY, Ms. STABENOW, Mr. REED, Mr. WHITEHOUSE, Mr. 

BLUMENTHAL, Ms. CORTEZ MASTO, Ms. HASSAN, Mr. KING, Ms. CANTWELL, Mrs. SHAHEEN, Ms. BALDWIN, Mr. DURBIN, Mr. BROWN, Mr. 

BOOKER, Ms. SMITH, Ms. WARREN, Mrs. MURRAY, Mr. CARDIN, Mr. 

MARKEY, and Ms. DUCKWORTH) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

A BILL 

To amend title XVIII of the Social Security Act to strengthen the drug pricing reforms in the Inflation Reduction 

Act. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Strengthening Medi5 care and Reducing Taxpayer Prices Act’’ or the ‘‘SMART 

6 Prices Act’’. 


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2 

•S 1264 IS

1 SEC. 2. REPEAL OF THE MEDICARE PART D NONINTER2 FERENCE CLAUSE. 

3 Section 1860D–11 of the Social Security Act (42 

4 U.S.C. 1395w–111) is amended by striking subsection (i). 

5 SEC. 3. IMPROVEMENTS TO THE MEDICARE DRUG PRICE 

6 NEGOTIATION PROGRAM. 

7 (a) ACCELERATION OF THE SELECTION OF NEGOTIA8 TION-ELIGIBLE DRUGS.— 

9 (1) IN GENERAL.—Section 1192(a) of the So10 cial Security Act (42 U.S.C. 1320f–1(a)) is amend11 ed— 

12 (A) in paragraph (1)— 

13 (i) by striking ‘‘10’’ and inserting 

14 ‘‘20’’; and 

15 (ii) by inserting ‘‘and’’ after the semi16 colon at the end; 

17 (B) by striking paragraph (2) and redesig18 nating paragraph (3) as paragraph (2); 

19 (C) in paragraph (2), as redesignated by 

20 subparagraph (B) of this paragraph— 

21 (i) by striking ‘‘2028, 15 negotiation22 eligible drugs’’ and inserting ‘‘2027 or a 

23 subsequent year, 40 negotiation-eligible 

24 drugs’’; and 

25 (ii) by striking ‘‘; and’’ at the end and 

26 inserting a period; and 


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•S 1264 IS

1 (D) by striking paragraph (4). 

2 (2) CONFORMING AMENDMENTS.—Section 1192 

3 of the Social Security Act (42 U.S.C. 1320f–1) is 

4 amended— 

5 (A) in subsection (b)(2)— 

6 (i) in the paragraph heading, by strik7 ing ‘‘AND 2027’’; and 

8 (ii) by striking ‘‘and with respect to 

9 the initial price applicability year 2027’’; 

10 and 

11 (B) in subsection (d)(1), in the matter pre12 ceding subparagraph (A), by striking ‘‘or 

13 2027’’. 

14 (b) IMPROVEMENTS TO THE DEFINITION OF QUALI15 FYING SINGLE SOURCE DRUG.—Section 1192(e)(1) of the 

16 Social Security Act (42 U.S.C. 1320f–1(e)(1)) is amend17 ed— 

18 (1) in subparagraph (A)(ii), by striking ‘‘7 

19 years’’ and inserting ‘‘3 years’’; and 

20 (2) in subparagraph (B)(ii), by striking ‘‘11 

21 years’’ and inserting ‘‘3 years’’. 

22 (c) IMPROVEMENT TO THE CEILING FOR MAXIMUM

23 FAIR PRICE.—Section 1194(c)(3) of the Social Security 

24 Act (42 U.S.C. 1320f–3(c)(3)) is amended— 


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•S 1264 IS

1 (1) in subparagraph (A), by striking ‘‘75 per2 cent’’ and inserting ‘‘76 percent’’; 

3 (2) in subparagraph (B), by striking ‘‘65 per4 cent’’ and inserting ‘‘55 percent’’; and 

5 (3) in subparagraph (C), by striking ‘‘40 per6 cent’’ and inserting ‘‘30 percent’’. 

Æ 


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