To amend title XI of the Social Security Act to equalize the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program.
Impact
The amendment proposed by HB 7174 has the potential to reshape the landscape of drug pricing negotiations significantly. By equalizing the negotiation periods, it seeks to enhance the competitive dynamics between different types of medications. This could lead to increased efficiencies in pricing, potentially lowering drug costs for consumers while maintaining the pharmaceutical industry's innovation incentives. Furthermore, it may impact insurance coverage and patient accessibility to both types of medications, leading to broader implications for healthcare financing and delivery.
Summary
House Bill 7174 aims to amend Title XI of the Social Security Act by equalizing the negotiation periods for small-molecule drugs and biologic candidates under the Drug Price Negotiation Program. Currently, the negotiation period for small-molecule drugs is set at seven years, whereas biologics have a longer negotiation timeframe. This bill proposes to extend the negotiation period for small molecules to eleven years, thereby fostering a more balanced approach between these two categories of pharmaceuticals.
Contention
While the bill is designed to promote parity in negotiations, it has generated debate regarding its implications for drug pricing and healthcare access. Proponents argue that extending the negotiation period for small-molecule drugs will lead to fairer pricing structures and foster innovation. Conversely, critics raise concerns about the potential negative effects on market competition and the implications for patients who rely on inexpensive biologics. The balance between incentivizing pharmaceutical development and ensuring affordable access to medications remains a key point of contention within the discussions surrounding this legislation.
To amend title XI of the Social Security Act to equalize the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program.
A bill to amend title XI of the Social Security Act to alter when biosimilar biological products are eligible for price negotiations under the Medicare program.
Mandating Exclusive Review of Individual Treatments (MERIT) Act This bill specifies that coverage determinations for drugs and biologics under Medicare must be made with respect to each drug or biologic, rather than with respect to a class of drugs or biologics.