Regulate the Price of All Drugs Act

Key Points

• The bill creates a new 13-member Prescription Drug Price Regulatory Commission that would recommend fair prices for every approved prescription drug in the U.S. The commission would consider manufacturing costs, therapeutic benefit, international prices, and research costs when setting price recommendations.
• Starting in 2027, the Secretary of Health and Human Services would publish a government-set "fair price" for every prescription drug each year. These prices would apply to anyone located in the United States, not just people on government insurance programs.
• Drug manufacturers that charge above the fair price face enormous penalties: a civil fine equal to 10 times the total overcharge. Individuals can also sue for triple damages or up to $50,000 per violation, and state attorneys general can bring enforcement actions too.
• If a drug company refuses to sell at the fair price or cannot meet patient demand, the government can seize their patent rights by granting licenses to other manufacturers to produce the drug.
• The bill allows the president to invoke the Defense Production Act to boost domestic drug manufacturing if the commission finds there are not enough facilities in the U.S. to meet patient demand at the fair price.