H.R.1922 - Ensuring Access to Essential Drugs Act (119th Congress)
Summary
H.R.1922, the "Ensuring Access to Essential Drugs Act," proposes an amendment to Title XVIII of the Social Security Act. The bill aims to exempt certain orally administered drugs from the Medicare Part D manufacturer discount program. These drugs are those that have received new drug application approval and have been reclassified as noninnovator multiple source drugs under the Medicaid drug rebate program.
Expected Effects
The likely effect of this bill is to alter the financial incentives within the Medicare Part D program. Specifically, it could reduce the discounts required from manufacturers for certain drugs. This may impact drug pricing and access for Medicare beneficiaries.
Potential Benefits
- Potentially incentivizes pharmaceutical companies to continue developing and marketing orally administered drugs.
- May lead to greater availability of certain essential medications for Medicare beneficiaries.
- Could reduce the financial burden on some pharmaceutical manufacturers, particularly those producing drugs that have transitioned from innovator to noninnovator status.
- May streamline the administrative processes related to drug pricing and discounts within the Medicare program.
- Could foster more competition among drug manufacturers, potentially leading to lower prices in the long run.
Most Benefited Areas:
Potential Disadvantages
- Could increase costs for Medicare Part D, potentially leading to higher premiums for beneficiaries or increased taxpayer burden.
- May reduce the discounts available to Medicare beneficiaries on certain essential drugs.
- Could create a loophole that allows pharmaceutical companies to avoid providing discounts on certain high-cost drugs.
- May disproportionately benefit pharmaceutical companies at the expense of taxpayers and Medicare beneficiaries.
- Could complicate the administration of the Medicare Part D program and increase the risk of fraud and abuse.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has broad authority to legislate on matters related to healthcare and social security under this clause. However, the specific details of the bill and its potential impact on drug prices and access could raise questions about whether it truly promotes the general welfare. Article I, Section 8 gives Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).