Sec. 3. Abolishing the prohibition on Medicare negotiation of drug prices and requiring the Secretary of Health and Human Services to negotiate prices of life-sustaining prescription drugs furnished under Part D of the Medicare program
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Section 1860D–11 of the Social Security Act ( 42 U.S.C. 1395w–111 ) is amended by striking subsection
(i)and inserting the following new subsection: With respect to any life-sustaining prescription drug (as defined in section 6(4) of the Life-Sustaining Prescription Drug Price Relief Act of 2019), if the Secretary determines under section 2 of such Act that the price of the drug is excessive, the Secretary shall, notwithstanding any other provision of law, negotiate with manufacturers, prescription drug plan sponsors, and MA organizations the total payment (including any discounts, rebates, and other price concessions) that may be made by such sponsors and organizations during a negotiated price period (as specified by the Secretary) for such drugs with respect to such drugs furnished to individuals who are enrolled under a prescription drug plan or under an MA–PD plan offered by such sponsor or organization, respectively. In the case of a life-sustaining prescription drug that is negotiated by the Secretary pursuant to paragraph (1), the total payment described in such paragraph may not exceed 110 percent of the average price charged for such drug in the 5 reference countries described in section 2(b)(1)(B) of such Act (in this section referred to as the international reference price ). In the case of a manufacturer of a life-sustaining prescription drug for which the Secretary has made a determination described in paragraph
(1)that fails to enter into a negotiation and agree on a total payment with respect to such drugs as described in such paragraph within 9 months of such determination— if such drug has an international reference price, the Secretary shall assess a civil monetary penalty equal to 2 times the difference between the total revenue for such drug from all sales in the United States made beginning after the date that is 9 months after such determination and the total revenue for such drug from all such sales made after such date that would have been received if the manufacturer charged the international reference price for such drug; and if such drug has an international reference price, the Secretary shall assess a civil monetary penalty equal to 50 percent of the revenue from all United States sales of the drug in the first 90 days after the date that is 9 months after such determination, 75 percent of the value of all revenue from such sales during the following 90 days, and 95 percent of all revenue from such sales in subsequent days until such time as an agreement is reached or an international reference price is available. Civil monetary penalties collected pursuant to subparagraph
(A)shall be deposited into the Federal Hospital Insurance Trust Fund. .
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- 42 USC 1395w–111
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Sec. 3
Abolishing the prohibition on Medicare negotiation of drug prices and requiring the Secretary of Health and Human Services to negotiate prices of life-sustaining prescription drugs furnished under Part D of the Medicare program
Cite42 USC 1395w–111
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