S.Amdt. 4634

The amendment, titled the "End Price Gouging for Medications Act," aims to change bill S. 1383 by striking all existing text after the enacting clause and replacing it with new provisions focused on prescription drug pricing.

The purpose of this amendment is to require the Secretary of Health and Human Services to set annual reference prices for prescription drugs. It aims to ensure that the retail list price for drugs does not exceed these reference prices for people in Federal health programs and all other individuals, including those without insurance or those with private coverage.

Key Changes and Additions

• Price Setting: Reference prices will be based on the lowest retail list price among specific reference countries (Australia, Austria, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom) if data is available for at least 3 of those countries. If not, the Secretary will determine a price based on factors like value, patient access, and research and development costs.

• Coverage: These prices apply to brand and generic drugs across various Federal health programs, including Medicare, Medicaid, TRICARE, the Department of Veterans Affairs, and the Federal Employees Health Benefits Program, among others.

• Enforcement: Drug manufacturers who do not comply face a civil penalty equal to 5 times the difference between the amount they received and the amount they would have received if they followed the reference price.

• Use of Penalties: Money collected from these penalties will be transferred to the Director of the National Institutes of Health for drug research and development.