S1836119th CongressWALLET

SMART Prices Act

Sponsored By: Senator Amy Klobuchar

Introduced

Summary

Expands and accelerates Medicare drug price negotiations. This bill would enlarge the pool of drugs that Medicare can negotiate, shorten how long a drug must be single-source before qualifying, and change the caps used to set maximum fair prices beginning in 2028.

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  • Medicare beneficiaries: More medicines could be chosen for negotiation starting in 2028, raising the annual count to 50 negotiation-eligible drugs instead of 15 and removing the prior schedule set in the law.
  • Drug manufacturers: Single-source drugs would reach negotiation eligibility much sooner, cutting one exclusivity track from 7 years to 3 years and another from 11 years to 3 years.
  • Price mechanics and timing: The bill recalibrates the Ceiling for Maximum Fair Price to 76 percent for one tier, 55 percent for another, and 30 percent for the lowest tier. The changes apply to initial price applicability years beginning in 2028.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

More Medicare drug price negotiation

If enacted, Medicare could pick up to 50 drugs for price negotiation starting in initial price years that begin in 2028. The bill would shorten the wait for some single-source drugs so they can be negotiated after 3 years instead of 7 or 11. If you use one of these drugs, Medicare-negotiated prices could lower your out-of-pocket costs and reduce Medicare spending.

Medicare maximum drug price ceilings

If enacted, the bill would change the percentage ceilings used to set Medicare's Maximum Fair Price for negotiated drugs starting in initial price years that begin in 2028. It would set tier ceilings at 76%, 55%, and 30% for different pricing categories. Because one ceiling rises slightly and two fall, some negotiated prices could go up and others could go down.

Sponsors & CoSponsors

Sponsor

Amy Klobuchar

MN • D

Cosponsors

  • Peter Welch

    VT • D

    Sponsored 5/21/2025

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 5/21/2025

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 5/21/2025

  • Sen. Cantwell, Maria [D-WA]

    WA • D

    Sponsored 5/21/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 5/21/2025

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 5/21/2025

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 5/21/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 5/21/2025

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 5/21/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 5/21/2025

  • Sen. Murray, Patty [D-WA]

    WA • D

    Sponsored 5/21/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 5/21/2025

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 5/21/2025

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 5/21/2025

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 5/21/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 5/21/2025

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 5/21/2025

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 5/21/2025

  • Sen. Murphy, Christopher [D-CT]

    CT • D

    Sponsored 5/21/2025

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 5/21/2025

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 5/21/2025

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 5/21/2025

  • Sen. Hassan, Margaret Wood [D-NH]

    NH • D

    Sponsored 5/21/2025

  • Sen. Heinrich, Martin [D-NM]

    NM • D

    Sponsored 5/21/2025

  • Elissa Slotkin

    MI • D

    Sponsored 5/21/2025

  • Sen. Bennet, Michael F. [D-CO]

    CO • D

    Sponsored 5/21/2025

Roll Call Votes

No roll call votes available for this bill.

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