Us Congress House Bill HB1350

Us Congress 2023-2024 Regular Session

• Introduced: 3/3/23
• Refer: 3/3/23
• Refer: 3/10/23

Caption

Cameron’s Law

Impact

The restoration of the orphan drug tax credit has implications for state laws regarding healthcare funding and drug accessibility. By encouraging pharmaceutical companies to invest in treatments for rare conditions, this legislation is expected to increase the number of available therapies for patients who suffer from these diseases. However, it may also lead to increases in drug prices, resulting in a debate over balancing incentives for innovation with access and affordability for patients. As such, this aligns with broader discussions around healthcare cost management at the state level.

Summary

House Bill 1350, known as 'Cameron’s Law', aims to amend the Internal Revenue Code of 1986 by restoring the amount of the orphan drug tax credit from 25% to 50%. This change is intended to provide greater financial incentives for the development of treatments for rare diseases, which often face significant challenges in research and marketing due to their limited patient populations. Advocates believe that increasing the tax credit will stimulate innovation and investment in pharmaceuticals that might otherwise be unprofitable to pursue due to the high costs associated with drug development.

Contention

Notable points of contention surrounding HB 1350 include concerns raised by some legislators regarding the potential for increased drug costs associated with the enhanced tax credit. Critics argue that while the intention of incentivizing research is commendable, it could contribute to higher prices for consumers without guaranteeing that the developed treatments will be affordable or accessible to those who need them. Furthermore, the role of the CDC in conducting a feasibility study on surveillance infrastructure for rare diseases, as mandated in the bill, might spark discussions about federal versus state oversight in health policy and resource allocation.