DISARM Act of 2014

To amend title XVIII of the Social Security Act to encourage the development and use of new antimicrobial drugs, and for other purposes. 1. Short title This Act may be cited as the Developing an Innovative Strategy for Antimicrobial Resistant Microorganisms Act of 2014 DISARM Act of 2014 2. Encouraging the development and use of new antimicrobial drugs (a) Additional payment for new antimicrobial drugs under Medicare (1) In general Section 1886(d)(5) of the Social Security Act ( 42 U.S.C. 1395ww(d)(5) (M) (i) Effective for discharges beginning on or after October 1, 2014, the Secretary shall, after notice and opportunity for public comment (in the publications required by subsection (e)(5) for a fiscal year or otherwise), recognize the costs of new antimicrobial drugs under the payment system established under this subsection. (ii) Pursuant to clause (i), the Secretary shall provide for additional payment to be made under this subsection with respect to discharges involving new antimicrobial drugs in the amount provided for under section 1847A for drugs and biologicals that are described in section 1842(o)(1)(C). (iii) For purposes of this subparagraph, the term new antimicrobial drug (I) is indicated to treat an infection caused by, or likely to be caused by, a qualifying pathogen (as defined under section 505E(f) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 355f(f) (II) is used in facilities that participate in the Antimicrobial Use and Resistance Module of the National Healthcare Safety Network of the Centers for Disease Control and Prevention (or, in the case that such Module is not available, is used in facilities that participate in such successor or similar reporting module or program relating to antimicrobials as the Secretary shall specify to the extent available to such facilities, as determined by the Secretary). (iv) Not later than July 1, 2014, the Secretary shall first publish in the Federal Register a list of the new antimicrobial drugs. . (2) Budget neutrality Section 1886(d)(3)(C) of the Social Security Act ( 42 U.S.C. 1395ww(d)(3)(C) (iii) Maintaining budget neutrality for certain antimicrobial drugs For discharges occurring in a fiscal year beginning with fiscal year 2015, the Secretary shall further reduce each of the average standardized amounts in an amount equal to the amount of the net additional expenditures, if any, in such fiscal year resulting from the application of paragraph (5)(M). . (b) Study and report on removing barriers to development of new antimicrobial drugs (1) Study The Comptroller General of the United States shall, in consultation with the Director of the United States Patent and Trademark Office, the Director of the National Institutes of Health, the Commissioner of Food and Drugs, and the Director of the Centers for Disease Control and Prevention, conduct a study to— (A) identify and examine the barriers that prevent the development of new antimicrobial drugs, as defined in section 1886(d)(5)(M)(iii) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(M)(iii)); and (B) develop recommendations for actions to be taken in order to overcome any barriers identified under subparagraph (A). (2) Report Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the study conducted under paragraph (1).

Summary: Developing an Innovative Strategy for Antimicrobial Resistant Microorganisms Act of 2014 or DISARM Act of 2014 - Amends title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Services (HHS) to: (1) recognize the costs of new antimicrobial drugs under the Medicare payment system for the inpatient services of subsection (d) hospitals, (2) provide for additional payment with respect to discharges involving such drugs, (3) publish in the Federal Register a list of the new antimicrobial drugs, and (4) further reduce each of the average standardized payment amounts in a specified manner to maintain budget neutrality in a fiscal year beginning with FY2015. (Generally, a subsection [d] hospital is an acute care hospital, particularly one that receives payments under Medicare's inpatient prospective payment system [IPPS] when providing covered inpatient services to eligible beneficiaries.) Directs the Comptroller General (GAO) to study the barriers that prevent the development of new antimicrobial drugs and develop recommendations for actions to be taken in order to overcome such barriers.