HR 3375119th CongressIn Committee

Fair Prescription Drug Prices for Americans Act

Introduced: May 13, 2025

Economy & TaxesHealthcare

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Fair Prescription Drug Prices for Americans Act, introduced in the House by Representative Van Drew in the 119th Congress, would create an international reference pricing system for prescription drugs and biological products sold in the United States. The core idea is to cap the U.S. retail list price of each drug or biological product at the average list price charged in six other countries (Canada, France, Germany, Italy, Japan, and the United Kingdom). The bill would require annual calculations of this international average, based on manufacturer data and publicly filed materials, and would impose per-unit civil penalties on manufacturers that exceed the cap. The Secretary of Health and Human Services would oversee data collection and implement the rules through guidance and regulations. In short, the bill seeks to align U.S. drug prices more closely with prices paid in six major international markets by creating a legally enforceable price cap tied to those markets, backed by monetary penalties for violations.

Key Points

1Caps on price: The retail list price in the United States for a drug or biological product may not exceed the average retail list price in Canada, France, Germany, Italy, Japan, and the United Kingdom, as calculated under the act.
2How the cap is calculated: The Secretary of Health and Human Services must annually determine the average retail list price for each drug or biological product sold in the six specified countries, using data from manufacturers and publicly filed materials.
3Civil penalties for violations: If a manufacturer exceeds the cap, they face a civil monetary penalty equal to 10 times the per-unit difference between the U.S. list price and the international average price, calculated for each unit sold.
4Data reporting requirement: Manufacturers must annually report the U.S. list price and the list prices in each of the six international countries.
5Implementation and guidance: The Secretary is directed to issue guidance and regulations to implement the statute and its provisions.

Impact Areas

Primary group/area affected- U.S. patients and consumers who purchase or pay for prescription drugs, and health insurers and employers that cover drug costs. The measure directly targets the price at which drugs are sold in the U.S. retail market.Secondary group/area affected- Drug manufacturers and pharmaceutical companies, which would face new price caps and potential penalties per unit sold. This could influence pricing strategies, reporting practices, and overall revenue.Additional impacts- Potential effects on federal and private payer dynamics, supply chains, and drug innovation incentives. The need to report international prices and the threat of per-unit penalties could lead to changes in pricing, product availability, or investment decisions. Practical considerations include how to compute “average retail list price” across countries, currency conversions, and how to handle discounts, rebates, and patient assistance programs, which are not fully detailed in the text.“Retail list price” typically refers to the sticker price before discounts or rebates; in practice, patient out-of-pocket costs can differ due to insurance coverage, rebates, and programs.The six-country benchmark includes Canada, France, Germany, Italy, Japan, and the United Kingdom, which together represent varied health systems and pricing practices. The method for converting foreign prices to a common unit (likely U.S. dollars) is not specified in the text and would be a key implementation detail.

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