S.527 - Prescription Pricing for the People Act of 2025 (119th Congress)
Summary
The Prescription Pricing for the People Act of 2025 (S.527) directs the Federal Trade Commission (FTC) to study the role of intermediaries, specifically pharmacy benefit managers (PBMs), in the pharmaceutical supply chain. The goal is to provide Congress with policy recommendations to improve transparency and competition, and to prevent anti-competitive behavior. The Act mandates the FTC to submit an interim report within 180 days and a final report within one year of enactment, detailing its findings and recommendations.
Expected Effects
If enacted, this bill will likely lead to increased scrutiny of PBM practices and potentially new regulations aimed at lowering prescription drug costs. The FTC's reports could inform legislative action to address issues such as PBM pricing practices, conflicts of interest, and anti-competitive behavior. This could result in lower drug prices for consumers and a more competitive pharmaceutical market.
Potential Benefits
- Increased Transparency: The study mandated by the Act will shed light on the often opaque practices of PBMs.
- Potential for Lower Drug Prices: By addressing anti-competitive behavior, the Act could lead to lower prescription drug costs for consumers.
- Improved Competition: The policy recommendations from the FTC could foster a more competitive pharmaceutical market.
- Informed Policymaking: The reports will provide Congress with valuable information to make informed decisions about healthcare policy.
- Consumer Protection: By identifying and addressing legal and regulatory obstacles, the Act aims to better protect consumers from unfair pricing practices.
Most Benefited Areas:
Potential Disadvantages
- Delayed Impact: The studies and reports take time, so any potential benefits are not immediate.
- Limited Scope: The Act focuses primarily on PBMs and may not address other factors contributing to high drug prices.
- Potential for Unintended Consequences: Regulations aimed at PBMs could have unintended effects on the pharmaceutical supply chain.
- FTC Resource Constraints: Conducting the mandated studies and investigations may strain the FTC's resources.
- No Guarantee of Action: The reports may not necessarily lead to legislative action or meaningful change.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to address issues related to healthcare costs and access. Specifically, the preamble of the Constitution states the goal to "promote the general Welfare". The Act's focus on studying and addressing potential anti-competitive practices in the pharmaceutical supply chain could be seen as an effort to improve the well-being of citizens by making prescription drugs more affordable. Further, Article 1, Section 8 grants Congress the power to regulate commerce, which could be interpreted to include the regulation of the pharmaceutical industry.
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).