[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3551 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 3551

  To amend titles XVIII and XIX of the Social Security Act and title 
   XXVII of the Public Health Service Act to provide for coverage of 
certain drugs used in the treatment or management of a rare disease or 
                   condition, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2025

  Mr. Tillis (for himself and Mr. Heinrich) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend titles XVIII and XIX of the Social Security Act and title 
   XXVII of the Public Health Service Act to provide for coverage of 
certain drugs used in the treatment or management of a rare disease or 
                   condition, and for other purposes.

    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 ``Providing Realistic Opportunity To 
Equal and Comparable Treatment for Rare Act'' or the ``PROTECT for Rare 
Act''.

SEC. 2. COVERAGE OF CERTAIN DRUGS USED IN TREATMENT OR MANAGEMENT OF A 
              RARE DISEASE OR CONDITION.

    (a) Medicare.--
            (1) Definition.--
                    (A) In general.--Section 1861(t)(2) of the Social 
                Security Act (42 U.S.C. 1395x(t)(2)) is amended--
                            (i) in subparagraph (A), by inserting after 
                        ``regimen'' the following: ``, or used in the 
                        treatment or management of a disease or 
                        condition affecting 200,000 or fewer 
                        individuals in the United States,''; and
                            (ii) in subparagraph (B)(ii)--
                                    (I) in subclause (I), by striking 
                                ``, or'' at the end and inserting a 
                                semicolon;
                                    (II) in subclause (II), by striking 
                                the period at the end and inserting ``; 
                                or''; and
                                    (III) by adding at the end the 
                                following new subclause:
                                    ``(III) in the case of a drug that 
                                is used in the treatment or management 
                                of a disease or condition affecting 
                                200,000 or fewer individuals in the 
                                United States, such use is supported by 
                                peer-reviewed medical literature, 
                                including clinical guidelines, and is 
                                not specifically listed as not 
                                indicated in one or more of the 
                                compendia described in section 
                                1927(g)(1)(B)(i), or listed as 
                                contraindicated in the labeling 
                                approved by the Food and Drug 
                                Administration.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to items and services 
                furnished on or after January 1, 2027..
            (2) Medically accepted uses of covered part d drugs in 
        treating rare conditions.--
                    (A) In general.--Section 1860D-2(e)(4)(A)(i) of the 
                Social Security Act (42 U.S.C. 1395w-104(e)(4)(A)(i)) 
                is amended, in the matter preceding subclause (I), by 
                inserting ``or in the case of a covered part D drug 
                used in the treatment or management of a disease or 
                condition affecting 200,000 or fewer individuals in the 
                United States,'' after ``regimen,''
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to plan years beginning on 
                or after January 1, 2027.
    (b) Medicaid.--
            (1) In general.--Section 1927(k)(6) of the Social Security 
        Act (42 U.S.C. 1396r-8(k)(6)) is amended to read as follows:
            ``(6) Medically accepted indication.--The term `medically 
        accepted indication' means any use for a covered outpatient 
        drug--
                    ``(A) which is approved under the Federal Food, 
                Drug, and Cosmetic Act;
                    ``(B) which is supported by one or more citations 
                included or approved for inclusion in any of the 
                compendia described in subsection (g)(1)(B)(i); or
                    ``(C) which, in the case of a drug used to treat or 
                manage a disease or condition affecting 200,000 or 
                fewer individuals in the United States--
                            ``(i) is a use of such drug that is 
                        supported by peer-reviewed medical literature, 
                        clinical guidelines, or an expert in such 
                        disease or condition, as identified by a 
                        medical society involved in the treatment or 
                        management of such disease or condition; and
                            ``(ii) is a use of such drug that is not 
                        listed as not indicated in the compendia 
                        described in subsection (g)(1)(B)(i), or listed 
                        as contraindicated in the labeling approved by 
                        the Food and Drug Administration.''.
            (2) Conforming amendment.--Section 1927(d)(4)(C) of the 
        Social Security Act (42 U.S.C. 1396r-8(d)(4)(C)) is amended by 
        striking ``compendia'' and inserting ``sources''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to covered outpatient drugs furnished 
        on or after January 1, 2027.
    (c) Private Health Insurance.--
            (1) In general.--
                    (A) PHSA.--Part D of title XXVII of the Public 
                Health Service Act (42 U.S.C. 300gg-111 et seq.) is 
                amended by adding at the end the following new section:

``SEC. 2799A-11. EXPEDITED PROCESS FOR REVIEW ASSOCIATED WITH CERTAIN 
              DRUGS USED IN TREATMENT OR MANAGEMENT OF A RARE DISEASE 
              OR CONDITION.

    ``A group health plan or a health insurance issuer offering group 
or individual health insurance coverage shall provide an expedited 
process pursuant to section 2719 by which a participant, beneficiary, 
or enrollee, or a designee or prescribing physician (or other 
prescriber, as appropriate) of the participant, beneficiary, or 
enrollee, may appeal any denial of coverage for a drug or biological 
product--
            ``(1) approved under section 505 of the Federal Food, Drug, 
        and Cosmetic Act or licensed under section 351;
            ``(2) for which the use is related to treatment or 
        management of a disease or condition affecting 200,000 or fewer 
        individuals in the United States; and
            ``(3) the use of which is supported by--
                    ``(A) the labeling for the drug or biological 
                product approved pursuant to such section 505 or 351; 
                or
                    ``(B) peer-reviewed literature, including clinical 
                guidelines, and that is not reviewed unfavorably in the 
                compendia described in section 1927(g)(1)(B)(i) of the 
                Social Security Act and is not listed as a 
                contraindication in such approved labeling.''.
                    (B) ERISA.--
                            (i) In general.--Subpart B of part 7 of 
                        subtitle B of title I of the Employee 
                        Retirement Income Security Act of 1974 (29 
                        U.S.C. 1185 et seq.) is amended by adding at 
                        the end the following new section:

``SEC. 736. EXPEDITED PROCESS FOR REVIEW ASSOCIATED WITH CERTAIN DRUGS 
              USED IN TREATMENT OR MANAGEMENT OF A RARE DISEASE OR 
              CONDITION.

    ``A group health plan or a health insurance issuer offering group 
health insurance coverage shall provide an expedited process pursuant 
to section 2719 of the Public Health Service Act (42 U.S.C. 300gg-19) 
by which a participant or beneficiary, or a designee or prescribing 
physician (or other prescriber, as appropriate) of the participant or 
beneficiary, may appeal any denial of coverage for a drug or biological 
product--
            ``(1) approved under section 505 of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355) or licensed under section 351 
        of the Public Health Service Act (42 U.S.C. 262);
            ``(2) for which the use is related to treatment or 
        management of a disease or condition affecting 200,000 or fewer 
        individuals in the United States; and
            ``(3) the use of which is supported by--
                    ``(A) the labeling for the drug or biological 
                product approved pursuant to such section 505 or 351; 
                or
                    ``(B) peer-reviewed literature, including clinical 
                guidelines, and that is not reviewed unfavorably in the 
                compendia described in section 1927(g)(1)(B)(i) of the 
                Social Security Act (42 U.S.C. 1396r-8(g)(1)(B)(i)) and 
                is not listed as a contraindication in such approved 
                labeling.''.
                            (ii) Clerical amendment.--The table of 
                        contents in section 1 of the Employee 
                        Retirement Income Security Act of 1974 (29 
                        U.S.C. 1001 et seq.) is amended by inserting 
                        after the item relating to section 725 the 
                        following new item:

``Sec. 726. Expedited process for review associated with certain drugs 
                            used in treatment or management of a rare 
                            disease or condition.''.
                    (C) IRC.--
                            (i) In general.--Subchapter B of chapter 
                        100 of the Internal Revenue Code of 1986 is 
                        amended by adding at the end the following new 
                        section:

``SEC. 9826. EXPEDITED PROCESS FOR REVIEW ASSOCIATED WITH CERTAIN DRUGS 
              USED IN TREATMENT OR MANAGEMENT OF A RARE DISEASE OR 
              CONDITION.

    ``A group health plan shall provide an expedited process pursuant 
to section 2719 of the Public Health Service Act (42 U.S.C. 300gg-19) 
by which a participant or beneficiary, or a designee or prescribing 
physician (or other prescriber, as appropriate) of the participant or 
beneficiary, may appeal any denial of coverage for a drug or biological 
product--
            ``(1) approved under section 505 of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355) or licensed under section 351 
        of the Public Health Service Act (42 U.S.C. 262);
            ``(2) for which the use is related to treatment or 
        management of a disease or condition affecting 200,000 or fewer 
        individuals in the United States; and
            ``(3) the use of which is supported by--
                    ``(A) the labeling for the drug or biological 
                product approved pursuant to such section 505 or 351; 
                or
                    ``(B) peer-reviewed literature, including clinical 
                guidelines, and that is not reviewed unfavorably in the 
                compendia described in section 1927(g)(1)(B)(i) of the 
                Social Security Act (42 U.S.C. 1396r-8(g)(1)(B)(i)) and 
                is not listed as a contraindication in such approved 
                labeling.''.
                            (ii) Clerical amendment.--The table of 
                        sections for subchapter B of chapter 100 of the 
                        Internal Revenue Code of 1986 is amended by 
                        adding at the end the following new item:

``Sec. 9826. Expedited process for review associated with certain drugs 
                            used in treatment or management of a rare 
                            disease or condition.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply with respect to plan years beginning on or after 
        January 1, 2027.
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