Us Congress Senate Bill SB1186

Us Congress 2025-2026 Regular Session

• Introduced: 3/27/25
• Refer: 3/27/25

Caption

Lower Drug Costs for Families Act This bill applies certain Medicare prescription drug rebate requirements to prescription drugs that are available under private health insurance. Current law requires drug manufacturers to issue rebates to the Centers for Medicare & Medicaid Services for brand-name drugs without generic equivalents under Medicare that (1) cost $100 or more per year per individual, and (2) for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties. The bill applies these requirements to prescription drugs that are available in the commercial market under private health insurance. It also indexes rebate calculations to drug prices in 2016 (as opposed to 2021).

Impact

If enacted, SB1186 will significantly affect state laws governing prescription drug pricing by establishing inflation adjustments and rebates related to drug costs that would apply universally. This change is intended to create a more equitable pricing structure for consumers, aligning private market prices more closely with what the government pays for prescription drugs under federal programs. The provided amendments are meant to enhance the transparency of drug pricing and foster competition among pharmaceutical companies.

Summary

SB1186, titled the 'Lower Drug Costs for Families Act,' aims to amend title XVIII of the Social Security Act to extend prescription drug inflation rebates to drugs provided in the commercial market. This legislative initiative targets the rising costs of prescription medications by ensuring that rebates are applied not only in government programs but also in the broader market where families procure their medications. By revising the calculation base year for these rebates to an earlier date, the bill is designed to generate more significant financial relief for consumers by potentially lowering the prices imposed by manufacturers.

Contention

Despite its promises of lowering drug costs, SB1186 has sparked debate among stakeholders. Proponents argue that applying inflation rebates to the commercial market is a necessary step toward making prescription medications more affordable and accessible for families. Conversely, opponents express concern that such comprehensive regulatory changes might discourage pharmaceutical innovation and lead to supply chain issues. Subsequently, discussions also revolve around how transitioning to earlier rebate calculation years may impact the financial dynamics for pharmaceutical companies, potentially leading to higher retail prices if producers adjust to maintain profit margins.

Congress_id

119-S-1186

Policy_area

Health

Introduced_date

2025-03-27