I 
116TH CONGRESS 
1ST SESSION H. R. 2038 
To allow State-based, market-oriented, prescription drug negotiations to lower 
pharmaceutical drug prices, to encourage competition, to increase con-
sumer choice and access, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2019 
Mr. MEADOWS introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To allow State-based, market-oriented, prescription drug ne-
gotiations to lower pharmaceutical drug prices, to encour-
age competition, to increase consumer choice and access, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘State-Based, Market- 
Oriented, Prescription Drug Negotiations Act of 2019’’. 
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SEC. 2. ANTITRUST EXEMPTION FOR PRIVATE HEALTH IN-
SURER ISSUERS TO NEGOTIATE WHOLESALE 
ACQUISITION 
PRICES 
OF 
PRESCRIPTION 
DRUGS PURCHASED FROM DRUG MANUFAC-
TURERS. 
It shall not be a violation of the antitrust laws for 
one or more private health insurer issuers or their des-
ignated agents to jointly negotiate wholesale acquisition 
prices of a prescription drug with a manufacturer of a pre-
scription drug with regards to the reimbursement policies 
of the insurers of the manufacturer’s drugs so long as no 
one single wholesale acquisition price is jointly determined 
between the insurance issuers or their designated agents. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) ANTITRUST
LAWS.—The term ‘‘antitrust 
laws’’ has the meaning given it in subsection (a) of 
the 1st section of the Clayton Act (15 U.S.C. 12(a)), 
except that such term includes section 5 of the Fed-
eral Trade Commission Act (15 U.S.C. 45) to the 
extent such section 5 applies to unfair methods of 
competition. 
(2) HEALTH
INSURANCE
ISSUER.—The term 
‘‘health insurance issuer’’ means an insurance com-
pany, insurance service, or insurance organization 
(including a health maintenance organization, as de-
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fined in paragraph (3)) which is licensed to engage 
in the business of insurance in a State and which is 
subject to State law which regulates insurance (with-
in the meaning of section 514(b)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1144(b)(2))). Such term does not include a group 
health plan. 
(3) HEALTH MAINTENANCE ORGANIZATION.— 
The 
term 
‘‘health 
maintenance 
organization’’ 
means— 
(A) a federally qualified health mainte-
nance organization (as defined in section 
300e(a) of title 42 of the Code of Federal Reg-
ulations), 
(B) an organization recognized under State 
law as a health maintenance organization, or 
(C) a similar organization regulated under 
State law for solvency in the same manner and 
to the same extent as such a health mainte-
nance organization. 
(4) MANUFACTURER.—The term ‘‘manufac-
turer’’ means anyone who is engaged in manufac-
turing, preparing, propagating, compounding, proc-
essing, packaging, repackaging, or labeling of a pre-
scription drug. 
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(5) PRESCRIPTION DRUG.—The term ‘‘prescrip-
tion drug’’ means any human drug required by Fed-
eral law or regulation to be dispensed only by a pre-
scription, including finished dosage forms and active 
ingredients subject to section 503(b) of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)). 
SEC. 4. EFFECTIVE DATE. 
This Act shall take effect on the date of the enact-
ment of this Act but shall not apply with respect to con-
duct that occurs before such date. 
Æ 
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