I 
113TH CONGRESS 
2D SESSION 
H. R. 5790 
To authorize the Director of the National Institutes of Health to design 
and enter into agreements for the implementation of prize competitions 
with the goal of improving health outcomes and thereby reducing Federal 
expenditures. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 3, 2014 
Mr. YOUNG of Indiana 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 authorize the Director of the National Institutes of 
Health to design and enter into agreements for the im-
plementation of prize competitions with the goal of im-
proving health outcomes and thereby reducing Federal 
expenditures. 
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 ‘‘Health Prizes Reward-
ing Innovation, Savings, and Effectiveness Act of 2014’’. 
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SEC. 2. PRIZE COMPETITIONS. 
(a) IN GENERAL.—Part B of title IV of the Public 
Health Service Act (42 U.S.C. 284 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 
409K. 
PRIZE 
COMPETITIONS 
FOR 
IMPROVING 
HEALTH OUTCOMES AND REDUCING FED-
ERAL EXPENDITURES. 
‘‘(a) GOALS.—The goal of the prize competitions 
under this section is to improve health outcomes, thereby 
reducing Federal expenditures on health programs. 
‘‘(b) INITIAL ACTIONS.— 
‘‘(1) IDENTIFICATION OF DISEASES AND CONDI-
TIONS.—Not later than 6 months after the date of 
enactment of the Health Prizes Rewarding Innova-
tion, Savings, and Effectiveness Act of 2014, the Di-
rector of NIH, in consultation with the Director of 
the Congressional Budget Office, the Administrator 
for the Centers for Medicare & Medicaid Services, 
and relevant health economists, shall identify 3 to 5 
human diseases or health conditions with respect to 
which— 
‘‘(A) the Federal Government, for such 
diseases and conditions, collectively spends a 
total of not less than $5,000,000,000 per year 
on prevention and treatment activities; 
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‘‘(B) public and private investment in re-
search is disproportionately small in comparison 
with such investment for other human diseases 
and conditions for which the Federal Govern-
ment has similar or greater expenditures on 
prevention and treatment activities; and 
‘‘(C) the prize competitions under this sec-
tion would be appropriate for achieving the goal 
described in subsection (a). 
‘‘(2) DESIGN
OF
PRIZE
COMPETITIONS.—Not 
later than 12 months after the date of enactment of 
the Health Prizes Rewarding Innovation, Savings, 
and Effectiveness Act of 2014, the Director of NIH 
shall— 
‘‘(A) design prize competitions— 
‘‘(i) to cooperate with competitors to 
realize innovations to achieve the goal de-
scribed in subsection (a) with respect to 
one or more diseases or conditions identi-
fied pursuant to subsection (b); and 
‘‘(ii) to award one or more prizes— 
‘‘(I) if appropriate, at the begin-
ning of or during the competitions, to 
the competitors whose innovations are 
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