SMART Prices Act

II 118TH CONGRESS 1ST SESSION S. 1246 To amend title XVIII of the Social Security Act to strengthen the drug pricing reforms in the Inflation Reduction Act. IN THE SENATE OF THE UNITED STATES APRIL 20, 2023 Ms. KLOBUCHAR (for herself, Mr. WELCH, Mrs. GILLIBRAND, Mr. HEINRICH, Mr. MERKLEY, Ms. STABENOW, Mr. REED, Mr. WHITEHOUSE, Mr. BLUMENTHAL, Ms. CORTEZ MASTO, Ms. HASSAN, Mr. KING, Ms. CANT- WELL, Mrs. SHAHEEN, Ms. BALDWIN, Mr. DURBIN, Mr. BROWN, Mr. BOOKER, Ms. SMITH, Ms. WARREN, Mrs. MURRAY, Mr. CARDIN, Ms. DUCKWORTH, and Mr. MARKEY) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XVIII of the Social Security Act to strength- en the drug pricing reforms in the Inflation Reduction Act. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Strengthening Medi- 4 care And Reducing Taxpayer Prices Act’’ or the ‘‘SMART 5 Prices Act’’. 6 VerDate Sep 11 2014 19:14 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1246.IS S1246 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1246 IS SEC. 2. REPEAL OF THE MEDICARE PART D NONINTER- 1 FERENCE CLAUSE. 2 Section 1860D–11 of the Social Security Act (42 3 U.S.C. 1395w–111) is amended by striking subsection (i). 4 SEC. 3. IMPROVEMENTS TO THE MEDICARE DRUG PRICE 5 NEGOTIATION PROGRAM. 6 (a) ACCELERATION OF THE SELECTION OF NEGOTIA- 7 TION-ELIGIBLE DRUGS.— 8 (1) IN GENERAL.—Section 1192(a) of the So- 9 cial Security Act (42 U.S.C. 1320f–1(a)) is amend- 10 ed— 11 (A) in paragraph (1)— 12 (i) by striking ‘‘10’’ and inserting 13 ‘‘20’’; and 14 (ii) by inserting ‘‘and’’ after the semi- 15 colon at the end; 16 (B) by striking paragraph (2) and redesig- 17 nating paragraph (3) as paragraph (2); 18 (C) in paragraph (2), as redesignated by 19 subparagraph (B) of this paragraph— 20 (i) by striking ‘‘2028, 15 negotiation- 21 eligible drugs’’ and inserting ‘‘2027 or a 22 subsequent year, 40 negotiation-eligible 23 drugs’’; and 24 (ii) by striking ‘‘; and’’ at the end and 25 inserting a period; and 26 VerDate Sep 11 2014 19:14 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1246.IS S1246 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1246 IS (D) by striking paragraph (4). 1 (2) CONFORMING AMENDMENTS.—Section 1192 2 of the Social Security Act (42 U.S.C. 1320f–1) is 3 amended— 4 (A) in subsection (b)(2)— 5 (i) in the paragraph heading, by strik- 6 ing ‘‘AND 2027’’; and 7 (ii) by striking ‘‘and with respect to 8 the initial price applicability year 2027’’; 9 and 10 (B) in subsection (d)(1), in the matter pre- 11 ceding subparagraph (A), by striking ‘‘or 12 2027’’. 13 (b) IMPROVEMENTS TO THE DEFINITION OF QUALI- 14 FYING SINGLE SOURCE DRUG.—Section 1192(e)(1) of the 15 Social Security Act (42 U.S.C. 1320f–1(e)(1)) is amend- 16 ed— 17 (1) in subparagraph (A)(ii), by striking ‘‘7 18 years’’ and inserting ‘‘3 years’’; and 19 (2) in subparagraph (B)(ii), by striking ‘‘11 20 years’’ and inserting ‘‘3 years’’. 21 (c) IMPROVEMENT TO THE CEILING FOR MAXIMUM 22 FAIR PRICE.—Section 1194(c)(3) of the Social Security 23 Act (42 U.S.C. 1320f–3(c)(3)) is amended— 24 VerDate Sep 11 2014 19:14 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1246.IS S1246 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1246 IS (1) in subparagraph (A), by striking ‘‘75 per- 1 cent’’ and inserting ‘‘76 percent’’; 2 (2) in subparagraph (B), by striking ‘‘65 per- 3 cent’’ and inserting ‘‘55 percent’’; and 4 (3) in subparagraph (C), by striking ‘‘40 per- 5 cent’’ and inserting ‘‘30 percent’’. 6 Æ VerDate Sep 11 2014 19:14 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1246.IS S1246 pbinns on DSKJLVW7X2PROD with $$_JOB