H.R.950 - Saving Seniors Money on Prescriptions Act (119th Congress)
Summary
H.R. 950, the "Saving Seniors Money on Prescriptions Act," aims to increase transparency in prescription drug pricing within Medicare Part D by establishing reporting requirements for Pharmacy Benefit Managers (PBMs). The bill mandates that PBMs provide detailed information on drug costs, rebates, and other financial arrangements to PDP sponsors and the Secretary of Health and Human Services. This increased transparency is intended to help control drug costs and ensure that savings are passed on to seniors. The bill also requires a GAO study on federal and state reporting requirements for health plans and PBMs related to prescription drug costs.
Expected Effects
If enacted, H.R. 950 would likely lead to greater scrutiny of PBM practices and potentially lower prescription drug costs for Medicare beneficiaries. The increased transparency could empower PDP sponsors to negotiate better deals with PBMs and manufacturers. The GAO study could lead to streamlined reporting requirements, reducing administrative burdens for health plans and PBMs.
Potential Benefits
- Increased Transparency: Requires PBMs to disclose detailed information about drug costs, rebates, and other financial arrangements.
- Potential Cost Savings: Could lead to lower prescription drug costs for seniors by increasing competition and accountability.
- Improved Negotiation: Empowers PDP sponsors to negotiate better deals with PBMs and manufacturers.
- Streamlined Reporting: The GAO study could lead to more efficient reporting requirements for health plans and PBMs.
- Better Oversight: Provides the Secretary of Health and Human Services with more information to oversee PBM practices.
Potential Disadvantages
- Increased Administrative Burden: PBMs may face increased administrative costs to comply with the new reporting requirements.
- Potential for Gaming the System: PBMs may find ways to circumvent the reporting requirements or manipulate pricing to maintain profits.
- Delayed Implementation: The reporting requirements do not go into effect until 2028, delaying any potential benefits.
- Limited Scope: The bill only addresses transparency and does not directly regulate PBM practices or pricing.
- Risk of Proprietary Information Disclosure: Concerns that disclosing certain information could harm PBMs' competitive position.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access and affordability for seniors. Congress has the power to legislate on matters related to Medicare under the Social Security Act, which is itself rooted in the power to provide for the general welfare. The reporting requirements do not appear to infringe on any specific constitutional rights.
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).