HR 2450: Prescription Drug Transparency and Affordability Act

Overview

Bill Number: HR 2450

Title: Prescription Drug Transparency and Affordability Act

Status: Introduced in House

Introduced: March 27, 2025

Purpose and Intent

The Prescription Drug Transparency and Affordability Act aims to increase transparency in prescription drug pricing and promote more affordable access to essential medications. The bill seeks to address concerns over rising drug costs and lack of clarity around pricing factors.

Key Provisions

• Requires pharmaceutical manufacturers to publicly disclose the actual costs of drug production, research and development, and marketing
• Mandates the disclosure of any payments or rebates provided to pharmacy benefit managers (PBMs) and health insurers
• Empowers the Secretary of Health and Human Services to negotiate maximum fair prices for certain high-cost drugs without generic competition
• Establishes an independent review board to assess the reasonableness of drug prices and make binding recommendations
• Caps patient out-of-pocket costs for prescription drugs at $250 per month or $3,000 per year

Affected Parties and Impacts

• Pharmaceutical manufacturers would be required to provide detailed cost and pricing information, impacting their business practices
• Pharmacy benefit managers and health insurers would need to disclose rebates and other financial arrangements
• Patients could see reduced out-of-pocket costs for essential medications, improving affordability and access
• The federal government would play a more active role in drug price negotiations and oversight

Procedural and Timeline Considerations

The Prescription Drug Transparency and Affordability Act was introduced in the House of Representatives on March 27, 2025. It has been referred to the House Committee on Energy and Commerce for further consideration. If passed by the House and Senate, and signed into law by the President, the bill's provisions would take effect within 6-12 months of enactment.