EPIC Act of 2025
New Bill Proposes Delaying Medicare Price Negotiations for Common Pills by Four Years
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Senator Tillis introduced a bill that would change how long the government must wait before negotiating lower prices for certain prescription drugs. Currently, Medicare can start negotiating prices for 'small-molecule' drugs—which are most standard pills—seven years after they are approved for sale.
- The bill would increase this waiting period to 11 years starting in 2028. This change would make the timeline for pills the same as the timeline for 'biologics,' which are more complex medicines usually given by injection or IV.
- This policy would mostly affect seniors and people with disabilities who rely on Medicare. By waiting four extra years to negotiate, the government and patients might continue paying higher brand-name prices for popular medications for a longer period of time.
- The goal of the change is to encourage drug companies to keep inventing new pills. Supporters argue that the current seven-year limit makes it too hard for companies to earn back the money they spent on research, which could stop them from creating new cures.
- If this becomes law, it would slow down the government's ability to lower costs for some of the most common brand-name drugs on the market. This could result in higher spending for the Medicare program and potentially higher out-of-pocket costs for some patients.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles1 big number: EPIC Act score
Eliminating the 'pill penalty' in the Inflation Reduction Act's drug price negotiations would cost about $10 billion over a decade, according to a preliminary CBO score. The proposal, known as the EPIC Act, is a priority of pharmaceutical manufacturers to lengthen the negotiation wait time.
Ending 'pill penalty' challenges sacred cow status of IRA
The EPIC Act aims to put small-molecule drugs on parity with biologics by setting a negotiation clock of 11 years before eligibility. While supporters call it a 'straightforward fix,' critics argue it targets a 'sacred cow' of the Biden administration's signature legislative achievement.
Incubate Executive Director Joins The Hill's Roundtable on the EPIC Act
A roundtable hosted by The Hill explored how the 'pill penalty' impacts medical innovation. Participants discussed the EPIC Act's role in restoring investment incentives for small-molecule treatments, which have seen a decline in funding since the Inflation Reduction Act's passage.
Source Information
Document Type
Congressional Bill
Official Title
EPIC Act of 2025
Data Sources
Sponsor
Cosponsors
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