I 
119TH CONGRESS 
1ST SESSION H. R. 2554 
To amend title XVIII of the Social Security Act to apply prescription drug 
inflation rebates to drugs furnished in the commercial market and to 
change the base year for rebate calculations. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2025 
Mr. HORSFORD (for himself, Mrs. CHERFILUS-MCCORMICK, and Mr. JOHN-
SON of Georgia) introduced the following bill; which 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 
A BILL 
To amend title XVIII of the Social Security Act to apply 
prescription drug inflation rebates to drugs furnished 
in the commercial market and to change the base year 
for rebate calculations. 
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 ‘‘Lower Drug Costs for 
Families Act’’. 
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SEC. 2. APPLICATION OF PRESCRIPTION DRUG INFLATION 
REBATES TO DRUGS FURNISHED IN THE 
COMMERCIAL MARKET. 
(a) PART B DRUGS.— 
(1) APPLICATION OF PRESCRIPTION DRUG IN-
FLATION REBATES TO DRUGS FURNISHED IN THE 
COMMERCIAL MARKET.—Section 1847A(i) of the So-
cial Security Act (42 U.S.C. 1395w–3a(i)) is amend-
ed— 
(A) in paragraph (1)(A)(i), by striking 
‘‘units’’ and inserting ‘‘billing units’’; 
(B) in paragraph (2)(A), by striking ‘‘for 
which payment is made under this part’’ and 
inserting ‘‘that would be payable under this 
part if such drug were furnished to an indi-
vidual enrolled under this part’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A)(i), by striking 
‘‘units’’ and inserting ‘‘billing units’’; and 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B) 
TOTAL
NUMBER
OF
BILLING 
UNITS.—For purposes of subparagraph (A)(i), 
the total number of billing units with respect to 
a part B rebatable drug is determined as fol-
lows: 
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‘‘(i) Determine the total number of 
units equal to— 
‘‘(I) the total number of units, as 
reported under subsection (c)(1)(B) 
for each National Drug Code of such 
drug during the calendar quarter that 
is two calendar quarters prior to the 
calendar quarter as described in sub-
paragraph (A), minus 
‘‘(II) the total number of units 
with respect to each National Drug 
Code of such drug for which payment 
was made under a State plan under 
title XIX (or waiver of such plan), as 
reported by States under section 
1927(b)(2)(A) for the rebate period 
that is the same calendar quarter as 
described in subclause (I). 
‘‘(ii) Convert the units determined 
under clause (i) to billing units for the bill-
ing and payment code of such drug, using 
a methodology similar to the methodology 
used under this section, by dividing the 
units determined under clause (i) for each 
National Drug Code of such drug by the 
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billing unit for the billing and payment 
code of such drug. 
‘‘(iii) Compute the sum of the billing 
units for each National Drug Code of such 
drug in clause (ii).’’. 
(2) CHANGE OF BASE YEAR FOR REBATE CAL-
CULATION.—Section 1847A(i) of the Social Security 
Act (42 U.S.C. 1395w–3a(i)) is amended— 
(A) in paragraph (3)— 
(i) in subparagraph (D), by striking 
‘‘July 1, 2021’’ and inserting ‘‘July 1, 
2016’’; and 
(ii) in subparagraph (E), by striking 
‘‘January 2021’’ and inserting ‘‘January 
2016’’; and 
(B) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘December 1, 
2020’’ and inserting ‘‘December 31, 
2015’’; and 
(II) by striking ‘‘January 2021’’ 
and inserting ‘‘January 2016’’; 
(ii) in subparagraph (B), by striking 
‘‘December 1, 2020’’ and inserting ‘‘De-
cember 31, 2015’’; and 
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(iii) in subparagraph (C), by striking 
‘‘January 2021’’ and inserting ‘‘January 
2016’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to cal-
endar quarters beginning on or after January 1, 
2026. 
(b) COVERED PART D DRUGS.— 
(1) APPLICATION OF PRESCRIPTION DRUG IN-
FLATION REBATES TO DRUGS FURNISHED IN THE 
COMMERCIAL MARKET.—Section 1860D–14B of the 
Social Security Act (42 U.S.C. 1395w–114b) is 
amended— 
(A) in subsection (b)— 
(i) in paragraph (1)— 
(I) in subparagraph (A)(i), by 
striking ‘‘the total number of units’’ 
and all that follows through the semi-
colon and inserting the following: ‘‘the 
total number of units that are used to 
calculate the average manufacturer 
price of such dosage form and 
strength with respect to such part D 
rebatable drug, as reported by the 
manufacturer of such drug under sec-
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tion 1927 for each month, with re-
spect to such period;’’; and 
(II) by striking subparagraph (B) 
and inserting the following: 
‘‘(B) EXCLUDED UNITS.—For purposes of 
subparagraph (A)(i), the Secretary shall exclude 
from the total number of units for a dosage 
form and strength with respect to a part D 
rebatable drug, with respect to an applicable pe-
riod, the following: 
‘‘(i) Units of each dosage form and 
strength of such part D rebatable drug for 
which payment was made under a State 
plan under title XIX (or waiver of such 
plan), as reported by States under section 
1927(b)(2)(A). 
‘‘(ii) Units of each dosage form and 
strength of such part D rebatable drug for 
which a rebate is paid under section 
1847A(i). 
‘‘(iii) Beginning with plan year 2026, 
units of each dosage form and strength of 
such part D rebatable drug for which the 
manufacturer provides a discount under 
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the program under section 340B of the 
Public Health Service Act.’’; and 
(ii) in paragraph (6), by striking ‘‘IN-
FORMATION.—The Secretary’’ and all that 
follows through ‘‘rebatable covered part D 
drug dispensed’’ and inserting the fol-
lowing: ‘‘AMP REPORTS.—The Secretary 
shall provide for a method and process 
under which, in the case of a manufacturer 
of a part D rebatable drug that submits 
revisions to information submitted under 
section 1927 by the manufacturer with re-
spect to such drug’’; and 
(B) by striking subsection (d) and insert-
ing the following: 
‘‘(d) INFORMATION.—For purposes of carrying out 
this section, the Secretary shall use information submitted 
by manufacturers under section 1927(b)(3) and informa-
tion submitted by States under section 1927(b)(2)(A).’’. 
(2) CHANGE OF BASE YEAR FOR REBATE CAL-
CULATION.—Section 1860D–14B of the Social Secu-
rity Act (42 U.S.C. 1395w–114b) is amended— 
(A) in subsection (b)(5)— 
(i) in subparagraph (A)— 
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