State-Based, Market-Oriented, Prescription Drug Negotiations Act of 2019

State-Based, Market-Oriented, Prescription Drug Negotiations Act of 2019

This bill authorizes health insurance issuers to jointly negotiate the prices for prescription drugs with the manufacturers of such drugs.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2038 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2038

 To allow State-based, market-oriented, prescription drug negotiations 
   to lower pharmaceutical drug prices, to encourage competition, to 
      increase consumer choice and access, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 2019

 Mr. Meadows introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To allow State-based, market-oriented, prescription drug negotiations 
   to lower pharmaceutical drug prices, to encourage competition, to 
      increase consumer choice and access, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State-Based, Market-Oriented, 
Prescription Drug Negotiations Act of 2019''.

SEC. 2. ANTITRUST EXEMPTION FOR PRIVATE HEALTH INSURER ISSUERS TO 
              NEGOTIATE WHOLESALE ACQUISITION PRICES OF PRESCRIPTION 
              DRUGS PURCHASED FROM DRUG MANUFACTURERS.

    It shall not be a violation of the antitrust laws for one or more 
private health insurer issuers or their designated agents to jointly 
negotiate wholesale acquisition prices of a prescription drug with a 
manufacturer of a prescription drug with regards to the reimbursement 
policies of the insurers of the manufacturer's drugs so long as no one 
single wholesale acquisition price is jointly determined between the 
insurance issuers or their designated agents.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Antitrust laws.--The term ``antitrust laws'' has the 
        meaning given it in subsection (a) of the 1st section of the 
        Clayton Act (15 U.S.C. 12(a)), except that such term includes 
        section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to 
        the extent such section 5 applies to unfair methods of 
        competition.
            (2) Health insurance issuer.--The term ``health insurance 
        issuer'' means an insurance company, insurance service, or 
        insurance organization (including a health maintenance 
        organization, as defined in paragraph (3)) which is licensed to 
        engage in the business of insurance in a State and which is 
        subject to State law which regulates insurance (within the 
        meaning of section 514(b)(2) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1144(b)(2))). Such term does 
        not include a group health plan.
            (3) Health maintenance organization.--The term ``health 
        maintenance organization'' means--
                    (A) a federally qualified health maintenance 
                organization (as defined in section 300e(a) of title 42 
                of the Code of Federal Regulations),
                    (B) an organization recognized under State law as a 
                health maintenance organization, or
                    (C) a similar organization regulated under State 
                law for solvency in the same manner and to the same 
                extent as such a health maintenance organization.
            (4) Manufacturer.--The term ``manufacturer'' means anyone 
        who is engaged in manufacturing, preparing, propagating, 
        compounding, processing, packaging, repackaging, or labeling of 
        a prescription drug.
            (5) Prescription drug.--The term ``prescription drug'' 
        means any human drug required by Federal law or regulation to 
        be dispensed only by a prescription, including finished dosage 
        forms and active ingredients subject to section 503(b) of the 
        Federal Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)).

SEC. 4. EFFECTIVE DATE.

    This Act shall take effect on the date of the enactment of this Act 
but shall not apply with respect to conduct that occurs before such 
date.
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