[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3680 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3680

  To require the Secretary of Health and Human Services to establish 
reference prices for prescription drugs for purposes of Federal health 
                               programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 29, 2018

  Mr. Merkley introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Health and Human Services to establish 
reference prices for prescription drugs for purposes of Federal health 
                               programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low Drug Prices Act''.

SEC. 2. REFERENCE PRICES FOR PRESCRIPTION DRUGS.

    (a) Reference Prices.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary''), in accordance with 
subsection (b), shall establish annual reference prices for each 
prescription drug. Notwithstanding any other provision of law, with 
respect to enrollees or beneficiaries in any of the Federal health 
programs described in subsection (c), the total acquisition cost 
(including the amount covered by the Federal health program and any 
cost-sharing amount and taking into account any discount or rebate 
provided by the manufacturer) for a drug shall not exceed the reference 
price for such drug.
    (b) Criteria.--
            (1) In general.--Each year, the Secretary shall establish 
        the reference price for each prescription drug under subsection 
        (a) by determining the median price for the drug among the 
        reference countries.
            (2) Reference countries.--For purposes of paragraph (1), 
        the reference countries are Japan, Germany, the United Kingdom, 
        France, Italy, Canada, Australia, Spain, the Netherlands, 
        Switzerland, and Sweden.
    (c) Federal Health Programs.--The reference prices established 
under subsection (a) shall apply with respect to covered inpatient and 
outpatient drugs under--
            (1) the Medicare program under title XVIII of the Social 
        Security Act (42 U.S.C. 1395 et seq.);
            (2) a State Medicaid plan under title XIX of the Social 
        Security Act (42 U.S.C. 1396 et seq.);
            (3) the State Children's Health Insurance Program under 
        title XXI of the Social Security Act (42 U.S.C. 1397aa et 
        seq.);
            (4) the TRICARE program under chapter 55 of title 10, 
        United States Code;
            (5) hospital care and medical services furnished by the 
        Department of Veterans Affairs under chapters 17 and 18 of 
        title 38, United States Code;
            (6) the Federal Employees Health Benefits Program 
        established under chapter 89 of title 5, United States Code; 
        and
            (7) any health program, service, function, activity, or 
        facility funded, in whole or part, under the Indian Health Care 
        Improvement Act (25 U.S.C. 1601 et seq.), including through 
        direct or contract care provided under such Act or through a 
        contract or compact under the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304 et seq.).
    (d) Applicability to Other Purchasers of Drugs.--Notwithstanding 
any other provision of law, as a condition for receiving reimbursements 
under any of the Federal programs described in subsection (c) for any 
drug, a drug manufacturer shall offer prescription drugs at the 
reference price to all individuals, including individuals who are not 
insured and individuals who are covered under a group health plan or 
group or individual health insurance coverage. In the case of 
individuals covered by a group health plan or group or individual 
health insurance coverage, such requirement is met if the amount 
covered under such plan or coverage plus the cost-sharing amount does 
not exceed the reference price.
    (e) Applicability to Brand and Generic Drugs.--The reference price 
established under subsection (a) shall apply to drugs approved under 
subsection (c) or (j) of section 505 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 355) or under subsection (a) or (k) of section 
351 of the Public Health Service Act (42 U.S.C. 262).
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