Plain Language Summary
# PLASMA Act Summary **What It Does:** The PLASMA Act would gradually reduce the mandatory discounts that drug manufacturers must provide for plasma-derived medicines (medications made from blood plasma) under Medicare's prescription drug program. Currently, manufacturers must discount these drugs by 10% during the initial coverage phase and 20% once patients reach catastrophic coverage levels. The bill would phase in lower discounts starting in 2026—beginning at just 1% and gradually increasing to the full 10% and 20% levels by 2030-2032.
This phase-in period would give manufacturers several years before reaching the current discount requirements. **Who It Affects:** The bill primarily affects Medicare patients who use plasma-derived medications (such as treatments for bleeding disorders, immune deficiencies, and certain infections), drug manufacturers of these products, and taxpayers who fund Medicare. Patients could potentially face higher out-of-pocket costs if manufacturers don't pass savings through, while the pharmaceutical industry would retain more revenue during the transition period. **Current Status:** The bill is currently in committee (HR 1476), meaning it has been introduced but hasn't yet been scheduled for a full vote by the House of Representatives. It was sponsored by Representative Richard Hudson (R-NC).
CRS Official Summary
Preserving Life-saving Access to Specialty Medicines in America Act or the PLASMA ActThis bill phases-in certain price adjustments for plasma-derived products under the Medicare prescription drug benefit's Manufacturer Discount Program.Current law requires manufacturers of covered drugs under the Medicare prescription drug benefit to provide a 10% discount for covered drugs during the initial coverage phase (i.e., before a beneficiary reaches the out-of-pocket spending threshold) and a 20% discount during the catastrophic coverage phase (i.e., after a beneficiary reaches the out-of-pocket spending threshold). The bill phases-in discounts for plasma-derived products over several years, starting with a 1% discount in 2026 for both the initial and catastrophic coverage phases, and ending with a 10% discount beginning in 2030 for the initial coverage phase and a 20% discount beginning in 2032 for the catastrophic coverage phase.
Latest Action
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.