Prescription Drug and Health Improvement Act of 2017
The source supplies the latest action, but no lifecycle stage.
Latest action (9 Feb 2017): Read twice and referred to the Committee on Finance.
What this bill does
The Prescription Drug and Health Improvement Act of 2017 would require the Centers for Medicare & Medicaid Services (CMS) to negotiate lower prices for certain prescription drugs covered by Medicare. The CMS would determine which drugs are appropriate for negotiation based on factors like spending, price increases, and the availability of alternatives. If negotiations fail after one year, the CMS would set the price at the lower of what the Department of Veterans Affairs or the four largest federal drug purchasers pay. The CMS could also choose to negotiate prices for other drugs.
This bill would affect Medicare and Medicare Advantage beneficiaries by potentially lowering their prescription drug costs. It would also involve the Department of Health and Human Services, the CMS, and the Government Accountability Office in the negotiation and reporting process. Additionally, the Center for Medicare and Medicaid Innovation would be tasked with testing new models for negotiating drug prices.
The bill was introduced in the Senate in February 2017 and referred to the Committee on Finance. Its latest action is "Introduced." It would take effect upon enactment, with the negotiation and pricing provisions applying to plan years beginning January 1, 2019.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Prescription Drug and Health Improvement Act of 2017
This bill requires the Centers for Medicare & Medicaid Services (CMS) to negotiate lower prices on behalf of Medicare and Medicare Advantage (MA) beneficiaries for covered prescription drugs that the CMS deems appropriate for negotiation based on: (1) program and per-beneficiary spending, (2) unit price increases over the preceding years, (3) initial launch price, (4) availability of similarly effective alternative treatments, (5) status of the drug as a follow-on to previously approved drugs, and (6) any other criteria determined by the CMS.
If, after a one year period, negotiations with respect to a covered prescription drug prove unsuccessful, the CMS shall establish a price for the drug that is equal to the lesser of the price paid by the Department of Veterans Affairs or the price paid by the four largest federal pharmaceutical-drug purchasers.
The CMS may (but is not required to) negotiate lower prices on behalf of Medicare and MA beneficiaries for other covered prescription drugs.
The Government Accountability Office must report to Congress on the CMS' negotiations.
The Center for Medicare and Medicaid Innovation must test several specified models for negotiating drug and biological prices.
Timeline
9 Feb 2017
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 348 do?
- The Prescription Drug and Health Improvement Act of 2017 would require the Centers for Medicare & Medicaid Services (CMS) to negotiate lower prices for certain prescription drugs covered by Medicare. The CMS would determine which drugs are appropriate for negotiation based on factors like spending, price increases, and the availability of alternatives. If negotiations fail after one year, the CMS would set the price at the lower of what the Department of Veterans Affairs or the four largest federal drug purchasers pay. The CMS could also choose to negotiate prices for other drugs. This bill would affect Medicare and Medicare Advantage beneficiaries by potentially lowering their prescription drug costs. It would also involve the Department of Health and Human Services, the CMS, and the Government Accountability Office in the negotiation and reporting process. Additionally, the Center for Medicare and Medicaid Innovation would be tasked with testing new models for negotiating drug prices. The bill was introduced in the Senate in February 2017 and referred to the Committee on Finance. Its latest action is "Introduced." It would take effect upon enactment, with the negotiation and pricing provisions applying to plan years beginning January 1, 2019.
- Has S. 348 become law?
- The source does not supply a confirmed lifecycle stage for S. 348. Check the latest action and official source below.
- Who sponsored S. 348?
- S. 348 was sponsored by Sen. Franken, Al [D-MN] (D-MN), with 3 cosponsors.
- What's the latest action on S. 348?
- Read twice and referred to the Committee on Finance. (9 Feb 2017).
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