Prescription Drug Pricing Reduction Act of 2019

Bill: 116-s-2543
Sponsor: Sen. Grassley, Chuck [R-IA]
Introduced: 2019-09-25 in the Senate
Policy area: Health
Subjects: Accounting and auditing
Administrative law and regulatory procedures
Appropriations
Congressional oversight
Department of Health and Human Services
Drug safety, medical device, and laboratory regulation
Drug therapy
Fraud offenses and financial crimes
Genetics
Government information and archives
Government studies and investigations
Health care costs and insurance
Health care coverage and access
Health care quality
Health technology, devices, supplies
Home and outpatient care
Hospital care
Indian social and development programs
Inflation and prices
Intergovernmental relations
Manufacturing
Medicaid
Medical ethics
Medicare
Minority health
Prescription drugs
Public contracts and procurement
Public participation and lobbying
Retail and wholesale trades
Social work, volunteer service, charitable organizations
State and local government operations

Summary:
action_date: 2019-09-25
text: 

Prescription Drug Pricing Reduction Act of 2019

 
This bill alters several programs and requirements relating to the prices of prescription drugs under Medicare and Medicaid. 
 
Among other things, the bill
 
 
requires drug manufacturers to issue rebates to the Centers for Medicare & Medicaid Services (CMS) for certain drugs covered under Medicare for which the average manufacturer price increases faster than inflation; 
 
requires drug manufacturers to issue rebates to the CMS for discarded amounts of certain single-dose drugs covered under Medicare, based on information reported by providers;
 
reduces the annual out-of-pocket spending threshold, and eliminates beneficiary cost-sharing above this threshold, under the Medicare prescription drug benefit;
 
requires the CMS to publish certain information, as reported by pharmacy benefit managers (PBMs), relating to drug discounts and rebates, and payments between PBMs, health plans, and pharmacies;
 
requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with PBMs under Medicaid; and
 
increases the maximum rebate payable by drug manufacturers under the Medicaid Drug Rebate Program.
 

action_date: 2019-09-25
text: 

Prescription Drug Pricing Reduction Act of 2019

 
This bill alters several programs and requirements relating to the prices of prescription drugs under Medicare and Medicaid. 
 
Among other things, the bill
 
 
requires drug manufacturers to issue rebates to the Centers for Medicare & Medicaid Services (CMS) for certain drugs covered under Medicare for which the average manufacturer price increases faster than inflation; 
 
requires drug manufacturers to issue rebates to the CMS for discarded amounts of certain single-dose drugs covered under Medicare, based on information reported by providers;
 
reduces the annual out-of-pocket spending threshold, and eliminates beneficiary cost-sharing above this threshold, under the Medicare prescription drug benefit;
 
requires the CMS to publish certain information, as reported by pharmacy benefit managers (PBMs), relating to drug discounts and rebates, and payments between PBMs, health plans, and pharmacies;
 
requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with PBMs under Medicaid; and
 
increases the maximum rebate payable by drug manufacturers under the Medicaid Drug Rebate Program.
 


Legislative actions:
action_date: 2019-09-25
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 225.
action_date: 2019-09-25
text: Committee on Finance. Original measure reported to Senate by Senator Grassley. With written report No. 116-120.
action_date: 2019-09-25
text: Committee on Finance. Original measure reported to Senate by Senator Grassley. With written report No. 116-120.
action_date: 2019-09-25
text: Introduced in Senate