Lowering Drug Costs for American Families Act
Summary
The "Lowering Drug Costs for American Families Act" aims to reduce prescription drug costs by expanding the drug price negotiation program under the Social Security Act, applying inflation rebates to drugs in the commercial market, and establishing out-of-pocket limits on prescription drug expenditures under private health insurance. It increases the number of drugs subject to negotiation and includes more individuals in the negotiation program. The bill also considers average international market prices during negotiation and repeals certain changes made by Public Law 119-21.
Expected Effects
This act will likely lead to lower drug costs for some Americans, particularly those with high prescription drug expenses or those enrolled in private health insurance plans. It could also affect pharmaceutical companies' revenue and pricing strategies. The Act also sets out-of-pocket limits for prescription drugs under group health plans and insurance coverage, effective from 2027.
Potential Benefits
- Lower prescription drug costs for individuals with private health insurance.
- Expanded access to negotiated drug prices.
- Out-of-pocket spending limits on prescription drugs.
- Application of inflation rebates to drugs in the commercial market.
- Increased transparency regarding health plan participation in drug price negotiation.
Potential Disadvantages
- Potential for pharmaceutical companies to reduce investment in research and development.
- Possible limitations on drug availability if manufacturers choose not to participate in negotiations.
- Health plans may opt out of the negotiation program, limiting the reach of the Act.
- The sunset clause on essential health benefits coverage could create uncertainty.
- Increased administrative burden for health plans and insurers.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's provisions related to healthcare and drug pricing fall under the purview of Congress's power to regulate interstate commerce, as outlined in Article I, Section 8, Clause 3 (the Commerce Clause). The expansion of Medicare benefits and the establishment of healthcare standards are also related to Congress's power to provide for the general welfare, as stated in the Preamble. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).