End Drug Price Gouging Act (H.R. 3391)

Summary

Requires the government to set a maximum price for prescription drugs, making sure they are not sold for more than the lowest price in other countries.

What problem does this solve?

Prescription drugs in the United States often cost much more than in other developed countries. This bill solves the problem by capping U.S. drug prices at the lowest price found in 12 other nations.

What does this bill do?

Establishes national reference prices for drugs

Requires the Secretary of Health and Human Services to set a maximum 'reference price' for every prescription drug sold in the U.S.

Ties U.S. drug prices to international costs

Sets the reference price to the lowest retail price for the same drug among 12 other countries, including Canada, Japan, and the United Kingdom.

Applies price caps to all health plans and people

Ensures the reference price applies not only to federal programs like Medicare but also to private insurance plans and uninsured individuals.

Creates large fines for drug companies

Imposes a civil penalty on drug makers who overcharge, equal to five times the amount they overcharged federal health programs.

Uses fines to fund medical research

Transfers all money collected from penalties to the National Institutes of Health (NIH) to be used for drug research and development.

Who does this affect?

Patients and consumers
Pharmaceutical companies
Federal health programs

What is the real world impact?

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Lowers prescription drug costs

Aims to make medications more affordable for all Americans by preventing drug companies from charging more in the U.S. than they do in other developed countries.

When does this start?

The new pricing rules would take effect once the bill becomes law, with the government setting prices annually.