Plain Language Summary
# PLASMA Act Summary **What the Bill Does** The PLASMA Act would reduce the mandatory discounts that pharmaceutical manufacturers must provide for plasma-derived medicines (medications made from blood plasma) under Medicare's drug benefit program. Currently, manufacturers must offer 10% discounts during the initial coverage phase and 20% discounts once patients reach high out-of-pocket costs. This bill would phase in these discounts gradually over several years—starting at just 1% in 2026 and not reaching the full 10% and 20% until 2030-2032. **Who It Affects** The bill primarily impacts Medicare beneficiaries who take plasma-derived medications (used to treat blood disorders and clotting problems), as well as pharmaceutical manufacturers of these products.
Beneficiaries could potentially pay more out-of-pocket during the transition period, while manufacturers would face lower discount requirements, which supporters argue helps preserve access to these specialized medicines. **Current Status** The bill is currently in committee (S. 694, 119th Congress), sponsored by Senator Thom Tillis (R-NC), meaning it has not yet been voted on by the full Senate. It remains in the early legislative stage.
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
Read twice and referred to the Committee on Finance.