To amend title XI of the Social Security Act to equalize the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program.
To amend title XI of the Social Security Act to equalize the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program.
Plain Language Summary
# HR 1492 Summary **What the Bill Does:** This bill would change the rules for which drugs Medicare can negotiate prices on. Currently, the Medicare Drug Price Negotiation Program—which begins in 2026—allows Medicare to negotiate prices for regular prescription drugs after 7 years on the market, but requires biologic drugs (made from living cells) to wait 11 years. This bill would extend the waiting period for regular drugs to 11 years as well, making both types of drugs wait the same amount of time before their prices can be negotiated.
The change would apply retroactively, meaning it would affect drugs already on the market. **Who It Affects:** This bill primarily affects Medicare beneficiaries (seniors and some disabled people), pharmaceutical companies, and taxpayers. By delaying when Medicare can negotiate drug prices, the bill could keep drug costs higher for Medicare patients in the short term, but would give drug manufacturers more years of protection before facing price negotiations. **Current Status:** HR 1492 is currently in committee and has not yet been voted on by the full House. It was introduced by Representative Gregory Murphy, a Republican from North Carolina.
CRS Official Summary
This bill lengthens the amount of time for which drug products must have market approval in order for the products to qualify for negotiation under the Medicare Drug Price Negotiation Program.The Medicare Drug Price Negotiation Program requires the Centers for Medicare & Medicaid Services to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The bill modifies these provisions so as to require drug products to also have had at least 11 years of market approval in order to qualify for negotiation.The bill's changes apply retroactively.
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.