SMART Prices Act
May 21, 2025
Introduced: May 21, 2025
May 21, 2025
Introduced: May 21, 2025
Summary
Increases the number of drugs Medicare can negotiate prices for and allows negotiation to happen sooner after a drug is approved.
What problem does this solve?
Current rules limit how many drug prices Medicare can negotiate and create long waits before new, expensive drugs are eligible, keeping costs high. This bill lets Medicare negotiate prices for more drugs each year and shortens the waiting period, leading to faster and broader cost savings.
What does this bill do?
Reference
Text:
Section:
Sec. 2(a)(1)(A)
Header:
Acceleration of the selection of negotiation-Eligible drugs
Increases number of drugs for price negotiation
Boosts the number of negotiation-eligible drugs selected each year from 15 to 50, starting in 2028.
Reference
Text:
Section:
Sec. 2(b)
Header:
Improvements to the definition of qualifying single source drug
Shortens negotiation eligibility period for new drugs
Reduces the time a new drug is exempt from price negotiation from 7 or 11 years down to 3 years after its approval.
Adjusts maximum fair price ceilings
Changes the price ceilings for negotiated drugs, lowering them for drugs on the market for 12-16 years (to 55%) and over 16 years (to 30%).
Who does this affect?
- Seniors on Medicare
- Pharmaceutical companies
- Taxpayers
What is the real world impact?
•
Reduces healthcare costs for seniors and taxpayers
Expands the existing Medicare drug negotiation program to cover more medications and achieve savings more quickly, making prescriptions more affordable for people on Medicare and saving public funds.
When does this start?
The changes to the drug price negotiation program would apply to pricing years beginning in 2028.