The bill would make the federal government set a maximum price for every prescription drug each year. Federal health plans could not pay more than that price, and drug makers would also have to offer it to private plans and uninsured people. Drug companies that overcharge federal programs could face steep fines.
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End Price Gouging for Medications Act is a House bill in committee. The latest recorded action: Referred to the Subcommittee on Health.
Latest action on H.R. 3391: Referred to the Subcommittee on Health.
Who this affects: This bill mainly affects people who get drugs through Medicare, Medicaid, TRICARE, veterans' health care, federal employee health plans, and Indian health programs, because those plans could not pay above the new federal price cap. It also affects people with private insurance and people without insurance, because drug companies would have to offer them prices that stay within the same limit. Drug manufacturers would face the biggest direct legal change, because they would have to follow the new pricing rules for the whole U.S. market or risk major fines.
Why this matters: This bill matters because it could lower what many health plans and patients pay for prescription drugs in the United States. It tries to do that by tying U.S. prices to lower prices in other wealthy countries and by extending that cap beyond federal programs. That could save money for government health plans, private coverage, and some uninsured people. But it could also change how drug companies price drugs, where they launch them, and how much money they expect to make in the U.S. market.
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