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Prescription Drug Pricing Reduction Act of 2020

Introduced: July 2, 2020 Introduced by: Grassley, Chuck Republican · Iowa See on congress.gov
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 2, 2020
Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S4228)
Jul 2, 2020
Introduced in Senate
 Plain-English summary Congressional Research Service

Prescription Drug Pricing Reduction Act of 2020

This bill alters several programs and requirements relating to the prices of prescription drugs under Medicare and Medicaid.

Among other things, the bill

  • requires drug manufacturers to issue rebates to the Centers for Medicare & Medicaid Services (CMS) for certain drugs covered under Medicare for which the average manufacturer price increases faster than inflation;
  • requires drug manufacturers to issue rebates to the CMS for discarded amounts of certain single-dose drugs covered under Medicare, based on information reported by providers;
  • reduces the annual out-of-pocket spending threshold, and eliminates beneficiary cost-sharing above this threshold, under the Medicare prescription drug benefit;
  • requires the CMS to publish certain information, as reported by pharmacy benefit managers (PBMs), relating to drug discounts and rebates, and payments between PBMs, health plans, and pharmacies;
  • requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with PBMs under Medicaid; and
  • increases the maximum rebate payable by drug manufacturers under the Medicaid Drug Rebate Program.
What's happening now July 2, 2020

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S4228)

 Committees of jurisdiction 1