Summary of HR 1492: Drug Price Negotiation Program Amendment

Bill Overview

Bill Number: HR 1492

Title: To amend title XI of the Social Security Act to equalize the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program.

Status: Introduced in House

Introduced Date: February 21, 2025

Classification: Bill

Purpose and Intent

The primary purpose of HR 1492 is to amend the Drug Price Negotiation Program established under the Social Security Act. Specifically, the bill seeks to equalize the negotiation period for drug prices between small-molecule drugs and biologic drugs. This change aims to enhance the effectiveness of price negotiations, potentially leading to lower drug costs for consumers.

Key Provisions

• Amendment to Negotiation Period:

  • The bill proposes to amend Section 1192(e)(1)(A)(ii) of the Social Security Act by changing the negotiation period from 7 years to 11 years for biologic candidates.
  • This amendment is intended to provide a longer timeframe for negotiations, which may facilitate better pricing outcomes for biologic drugs, aligning them more closely with the existing framework for small-molecule drugs.

• Effective Date:

  • The amendment will take effect as if it were included in the enactment of Public Law 117–169, which indicates that the changes will be retroactive to that law's enactment date.

Affected Parties

• Pharmaceutical Companies: The bill will impact companies that manufacture both small-molecule and biologic drugs by altering the negotiation landscape and potentially affecting their pricing strategies.
• Consumers: Patients who rely on biologic medications may benefit from potentially lower prices resulting from extended negotiation periods.
• Healthcare Providers: Providers may see changes in drug pricing, which could influence treatment options and costs for patients.

Legislative Actions

• Referred to Committees: On the day of its introduction, HR 1492 was referred to the Committee on Energy and Commerce and the Committee on Ways and Means for further consideration. The Speaker will determine the period for which the committees will review the bill.

Sponsors

The bill is sponsored by Gregory F. Murphy and has a significant number of cosponsors, indicating broad support among members of the House. Notable cosponsors include:
- Kat Cammack
- Nathaniel Moran
- Lloyd Smucker
- Kevin Hern
- Zachary Nunn
- Richard Hudson
- And many others, totaling over 50 cosponsors.

Conclusion

HR 1492 represents a legislative effort to reform drug price negotiations by extending the negotiation period for biologic drugs. This change aims to create a more equitable framework for drug pricing, potentially benefiting consumers and altering the competitive landscape for pharmaceutical companies. The bill is currently under review by relevant House committees.