H.R. 011 | SMART Prices Act

[Brink]

119th CONGRESS
1st Session
H.R. 11

To amend title XVIII of the Social Security Act to strengthen the drug pricing reforms in the Inflation Reduction Act.

IN THE SENATE OF THE UNITED STATES
Q1, 2025
Ms. O'Hare (for herself and others with thanks to Ms. Klobuchar) introduced the following bill; 

A BILL
To amend title XVIII of the Social Security Act to strengthen the drug pricing reforms in the Inflation Reduction Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Strengthening Medicare And Reducing Taxpayer Prices Act” or the “SMART Prices Act”.

SEC. 2. Repeal of the Medicare part D noninterference clause.

Section 1860D–11 of the Social Security Act (42 U.S.C. 1395w–111) is amended by striking subsection (i).

SEC. 3. Improvements to the Medicare Drug Price Negotiation Program.

(a) Acceleration of the selection of negotiation-Eligible drugs.—

(1) IN GENERAL.—Section 1192(a) of the Social Security Act (42 U.S.C. 1320f–1(a)) is amended—

(A) in paragraph (1)—

(i) by striking “10” and inserting “20”; and

(ii) by inserting “and” after the semicolon at the end;

(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2);

(C) in paragraph (2), as redesignated by subparagraph (B) of this paragraph—

(i) by striking “2028, 15 negotiation-eligible drugs” and inserting “2027 or a subsequent year, 40 negotiation-eligible drugs”; and

(ii) by striking “; and” at the end and inserting a period; and

(D) by striking paragraph (4).

(2) CONFORMING AMENDMENTS.—Section 1192 of the Social Security Act (42 U.S.C. 1320f–1) is amended—

(A) in subsection (b)(2)—

(i) in the paragraph heading, by striking “and 2027”; and

(ii) by striking “and with respect to the initial price applicability year 2027”; and

(B) in subsection (d)(1), in the matter preceding subparagraph (A), by striking “or 2027”.

(b) Improvements to the definition of qualifying single source drug.—Section 1192(e)(1) of the Social Security Act (42 U.S.C. 1320f–1(e)(1)) is amended—

(1) in subparagraph (A)(ii), by striking “7 years” and inserting “3 years”; and

(2) in subparagraph (B)(ii), by striking “11 years” and inserting “3 years”.

(c) Improvement to the ceiling for maximum fair price.—Section 1194(c)(3) of the Social Security Act (42 U.S.C. 1320f–3(c)(3)) is amended—

(1) in subparagraph (A), by striking “75 percent” and inserting “76 percent”;

(2) in subparagraph (B), by striking “65 percent” and inserting “55 percent”; and

(3) in subparagraph (C), by striking “40 percent” and inserting “30 percent”

 

PES: 

This bill modifies requirements of the Medicare Drug Price Negotiation Program and makes other changes with respect to the prices of prescription drugs under Medicare.

Current law requires the Centers for Medicare & Medicaid Services (CMS) to negotiate maximum prices for brand-name drugs that do not have other generic equivalents and that account for the greatest Medicare spending. The CMS must negotiate the prices of 10 drugs that are covered under the Medicare prescription drug benefit in 2026, 15 drugs that are covered under the Medicare prescription drug benefit in 2027, 15 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2028, and 20 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2029 and each year thereafter.

The bill requires the CMS to negotiate the prices of 20 drugs under the Medicare prescription drug benefit in 2026 and 40 drugs under the Medicare prescription drug benefit or under Medicare medical services in 2027 and each year thereafter. It also (1) shortens the required period of market approval from 7 years and 11 years for drugs and biologics, respectively, to 3 years; and (2) modifies the ceiling for the maximum fair price for short-, extended-, and long-monopoly drugs.

The bill also repeals provisions that prohibit the CMS from interfering in negotiations between drug manufacturers, pharmacies, and PDP sponsors (i.e., noninterference clause).

Edited November 20, 2024 by Brink

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The House shall come to debate this legislation for a period of 72 hours.

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Representative Rosa DeLauro (CT-3, Progressive Caucus)

Mr. Speaker,

Today I rise in support of the SMART Prices act. This bill will build upon the successes of the Biden Administration when it comes to drug price negotiation. Our seniors deserve the most affordable prescription drugs as possible and to do that Medicare must be able to act as a true negotiator with prices instead of simply taking prices from an industry that has shown time and time again that it prioritizes corporate greed above the good their medications do. The President has repeatedly said that he supports drug price negotiation so this is our chance to get this done. Beyond that it is a successful program that improves the lives of ordinary Americans. We cannot delay the passage of this act. The bill will help preserve medicare in the long term and is the right thing to do. I implore my fellow Congresspeople to vote in favor of the bill. 

I yield. 

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The House shall come to order to vote on this legislation for a period of 30 hours. 

[Jack]

Freedom: NAY

Edited November 20, 2024 by Jack

[Avner]

Blue Dogs: Free Vote

[Storm]

Progressives-Aye

[Redacted]

Study Committee: Free vote 

[GamerBoy]

Mainstreet Caucus: Aye

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The House has passed this legislation in a 319-114 vote and it will now be sent to the Senate.