Overview
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.
ELI5 AI
H. R. 7174 is a bill that wants to change how long it takes to talk about and decide prices for new medicines, making it the same amount of time for all types of medicines. It suggests that instead of taking 7 years, this process should take 11 years.
Summary AI
H. R. 7174 proposes an amendment to the Social Security Act to make the negotiation period the same for small-molecule and biologic drug candidates under the Drug Price Negotiation Program. Specifically, the bill changes the current negotiation period from 7 years to 11 years. This change would apply as if it was part of a previous law, Public Law 117–169.
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AnalysisAI
General Summary of the Bill
H.R. 7174 is a legislative proposal introduced in the U.S. House of Representatives that seeks to make a significant alteration to the Drug Price Negotiation Program under the Social Security Act. Specifically, this bill aims to extend the negotiation period for biologic drug candidates from 7 years to 11 years, aligning it with the period for small-molecule drugs. These changes are proposed to be applied retroactively, as though they were part of Public Law 117-169 from its inception.
Summary of Significant Issues
A key issue with this bill is its lack of explanation or justification for why the extension of the negotiation period is warranted. Without an articulated rationale, it raises questions about the necessity and fairness of the proposed change. Additionally, the absence of an accompanying analysis or impact assessment further compounds the challenge of understanding how this legislative change might influence drug prices, healthcare costs, or patient access to medications. Furthermore, the technical language used in the bill may be difficult for those unfamiliar with the Social Security Act to understand, potentially causing misunderstandings about its content and implications.
Impact on the Public
The proposed extension of the negotiation period could have broad implications for the public. On one hand, allowing a longer negotiation period might enable more favorable pricing terms for drugs, potentially leading to reduced healthcare expenses. On the other hand, an extended negotiation window may delay the entry of lower-priced versions of these drugs into the market, possibly affecting patient access and drug affordability.
Impact on Specific Stakeholders
For pharmaceutical companies, particularly those specializing in biologics, the bill could present advantages by prolonging the exclusivity of their drug products in the market. This might lead to increased revenues and sustain research and development efforts. Conversely, it could negatively impact consumers and payers if delayed competition results in sustained high drug prices, thereby affecting affordability and accessibility. Policymakers and healthcare providers may also face complexities in planning and budgeting for healthcare costs if the implications of the bill lead to unanticipated changes in drug pricing.
In conclusion, while H.R. 7174 aims to equalize the negotiation treatment between small-molecule and biologic drugs, the lack of clarity regarding the bill’s intent and its potential impact can lead to uncertainty among various stakeholders. Greater transparency and thorough impact assessments would be beneficial to fully understand how such legislative changes might affect the healthcare landscape.
Issues
The bill proposes to extend the negotiation period for biologic candidates from 7 years to 11 years, as per Section 1(a), without providing any explanation or justification for why this change is needed or beneficial. This can raise questions regarding transparency and the rationale behind the extension, which might affect public trust and the perception of fairness in the Drug Price Negotiation Program.
There is no analysis or impact assessment accompanying the bill to explain how extending the negotiation period might affect drug pricing, healthcare costs, or patients' access to medications. This information is crucial for stakeholders, including policymakers and the public, to understand the potential implications of the legislative amendment stated in Section 1.
The language used in Section 1 is somewhat technical and may not be easily comprehensible to individuals without a background in the Social Security Act or knowledge of specific sections. This could lead to misunderstandings about the bill's intent and its potential impact.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Equalizing the negotiation period between small-molecule and biologic candidates under the Drug Price Negotiation Program Read Opens in new tab
Summary AI
This section proposes a change to the Social Security Act to extend the negotiation period for small-molecule and biologic drug candidates from 7 years to 11 years under the Drug Price Negotiation Program. The change will be applied retroactively as if it was part of Public Law 117-169 from the start.