Regulate the Price of All Drugs Act
Sponsored By: Representative Sherman, Brad [D-CA-32]
Introduced
Summary
This bill would create a new federal commission to set and publish _fair prices for all approved prescription drugs_. It would pair those price rules with enforcement, patent march-in rights, and tools to boost domestic supply and affordability.
Show full summary
- Patients and families would have drugs made available at the published fair price for eligible individuals, with the first fair price applicability year starting in 2027.
- Drug manufacturers would face civil penalties equal to 10 times the number of units dispensed times the price difference if they sell above the fair price. Private suits could seek injunctive relief and treble damages capped at $50,000 per violation for willful violations.
- Health providers and federal agencies would get guaranteed access to published prices and a formal revision process led by the Secretary of Health and Human Services and the Commission. The President could use the Defense Production Act to expand domestic production if supplies cannot meet demand.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
Ban on selling drugs above fair price
If enacted, selling a drug in the United States above the published fair price would be banned. The Federal Trade Commission would be able to enforce the ban. Injured people could sue to stop violations and recover three times their monetary loss or up to $50,000 per violation, plus costs and attorney's fees. Manufacturers who do not offer drugs at the fair or authorized price would also face civil penalties equal to 10 times the units sold times the per-unit price gap each year.
HHS would set and publish prices
If enacted, the HHS Secretary would set and publish a fair price for each approved drug by July 1 for price years starting in 2027. HHS would use the commission's recommendations and may revise published prices if supply or demand changes, with at least 30 days' notice to manufacturers. HHS could allow temporary above-price sales for an initial 90 days and extend by additional 90-day periods to maintain access.
New federal drug pricing commission
If enacted, the bill would create a 13-member Prescription Drug Price Regulatory Commission. Members would serve four-year terms, with a one-year extension allowed. The commission would recommend a fair price for every approved prescription drug by May 1 for price years starting in 2027. Congress could appropriate such sums as may be necessary each year to run the commission.
Government tools to protect drug supply
If enacted, HHS could claim licenses to drug patents when a patent owner sells above the fair price or fails to supply enough at that price. Licenses could be nonexclusive, partially exclusive, or exclusive on reasonable terms. The President could use the Defense Production Act to boost domestic drug production when U.S. capacity is inadequate and foreign supply is unreliable for purchase at the fair price.
Sponsors & CoSponsors
Sponsor
Sherman, Brad [D-CA-32]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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