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H.R. 2542 119th Congress House

Old Drugs, New Cures Act

Official title: To amend titles XVIII and XIX of the Social Security Act to provide that priority research drugs shall not be treated as line extensions of existing drugs for … Show full official titleShow less

Official title: To amend titles XVIII and XIX of the Social Security Act to provide that priority research drugs shall not be treated as line extensions of existing drugs for purposes of calculating manufacturer rebates under the Medicare and Medicaid programs, and for other purposes.

Introduced: April 1, 2025 Introduced by: Donald G. Davis Democratic · North Carolina See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 1, 2025
Introduced in House
Apr 1, 2025
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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What's happening now April 1, 2025

Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

 Plain-English summary Congressional Research Service

Old Drugs, New Cures Act

This bill exempts manufacturers of certain long-standing drugs from paying specialized rebates under the Medicaid Drug Rebate Program and the Medicare Prescription Drug Inflation Rebate Program. (Under these programs, drug manufacturers pay rebates to state Medicaid programs for certain drugs covered under Medicaid and to the Centers for Medicare & Medicaid Services for certain drugs covered under Medicare.)

Specifically, manufacturers may request that a drug that would otherwise be considered a line extension under the Medicaid and Medicare rebate programs to instead be designated as a priority research drug. (A line extension refers to an oral dose of a new formulation of an existing drug, such as an extended release formulation, that would subject the drug to specialized rebates under the Medicaid and Medicare drug rebate programs.)

Under the bill, a drug qualifies as a priority research drug if (1) at least 10 years have elapsed since the drug was first approved, (2) the manufacturer is investigating a new use of the drug that would address a significant unmet need, and (3) the new use addresses a disease or condition that has a high prevalence among beneficiaries of Medicaid, Medicare, or other federal health care programs. 

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
 Lobbying activity 7

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

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 Cosponsors 1
All 1 Republican 1
R
Pfluger, August
Texas · Apr 1, 2025
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 2542: Old Drugs, New Cures Act. 119th Congress. Open America. https://openamerica.io/bill/119-HR-2542/
MLA
"H.R. 2542: Old Drugs, New Cures Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-2542/.
Bluebook (legal)
H.R. 2542, 119th Cong. (2026), https://openamerica.io/bill/119-HR-2542/.
Markdown link
[H.R. 2542: Old Drugs, New Cures Act](https://openamerica.io/bill/119-HR-2542/)
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