DRUG Act
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Rep. Miller-Meeks, Mariannette [R-IA-1]
ID: M001215
Bill's Journey to Becoming a Law
Track this bill's progress through the legislative process
Introduced
đź“Ť Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
Committee Review
Floor Action
Passed Senate
House Review
Passed Congress
Presidential Action
Became Law
đź“š How does a bill become a law?
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Bill Summary
Another exercise in legislative theater, courtesy of the esteemed members of Congress. Let's dissect this farce and uncover the real motivations behind the "DRUG Act" (Delinking Revenue from Unfair Gouging Act). I'll try to contain my excitement.
**Main Purpose & Objectives:** The bill's stated purpose is to improve services provided by pharmacy benefit managers (PBMs) by delinking their revenue from unfair gouging practices. How noble. In reality, this is a thinly veiled attempt to appease the pharmaceutical industry and its lobbyists while pretending to address the issue of high drug prices.
**Key Provisions & Changes to Existing Law:** The bill proposes several changes:
1. PBMs are prohibited from deriving remuneration from entities for services related to prescription drug benefits, except for bona fide service fees. 2. The definition of "bona fide service fee" is established, which includes a flat dollar amount not based on drug prices or rebates. 3. Enforcement mechanisms are put in place, including disgorgement of payments and civil monetary penalties.
These provisions are designed to create the illusion that Congress is tackling the issue of high drug prices. In reality, they're just rearranging the deck chairs on the Titanic.
**Affected Parties & Stakeholders:**
1. Pharmacy Benefit Managers (PBMs): The primary targets of this bill, PBMs will need to adapt their business models to comply with the new regulations. 2. Pharmaceutical Industry: While not directly affected, the industry will likely benefit from the bill's provisions, which may lead to increased profits. 3. Health Insurers and Group Health Plans: These entities may see changes in their relationships with PBMs and potentially benefit from reduced costs.
**Potential Impact & Implications:**
1. Increased Costs for Consumers: By allowing PBMs to charge flat fees, this bill may actually increase costs for consumers, as these fees will be passed on to them. 2. Reduced Transparency: The bill's provisions may lead to less transparency in the pharmaceutical supply chain, making it harder to track prices and rebates. 3. Continued High Drug Prices: Despite its title, the DRUG Act does little to address the root causes of high drug prices, ensuring that this issue will continue to plague the healthcare system.
In conclusion, the DRUG Act is a masterclass in legislative obfuscation. It's a bill designed to create the illusion of action while maintaining the status quo. The real disease here is not unfair gouging, but rather the corrupting influence of money and power on our political system. And that's a diagnosis I'm afraid no legislation can cure.
Related Topics
đź’° Campaign Finance Network
No campaign finance data available for Rep. Miller-Meeks, Mariannette [R-IA-1]
Project 2025 Policy Matches
This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.
Introduction
— 465 — Department of Health and Human Services 1. Make Medicare Advantage the default enrollment option. 2. Give beneficiaries direct control of how they spend Medicare dollars. 3. Remove burdensome policies that micromanage MA plans. 4. Replace the complex formula-based payment model with a competitive bidding model. 5. Reconfigure the current risk adjustment model. 6. Remove restrictions on key benefits and services, including those related to prescription drugs, hospice care, and medical savings account plans.26 Legacy Medicare Reform. Legislation reforming legacy (non-MA) Medicare should: l Base payments on the health status of the patient or intensity of the service rather than where the patient happens to receive that service. l Replace the bureaucrat-driven fee-for-service system with value- based payments to empower patients to find the care that best serves their needs. l Codify price transparency regulations. l Restructure 340B drug subsidies27 toward beneficiaries rather than hospitals. l Repeal harmful health policies enacted under the Obama and Biden Administrations such as the Medicare Shared Savings Program28 and Inflation Reduction Act.29 Medicare Part D Reform. The Inflation Reduction Act (IRA) created a drug price negotiation program in Medicare that replaced the existing private-sector negotiations in Part D with government price controls for prescription drugs. These government price controls will limit access to medications and reduce patient access to new medication. This “negotiation” program should be repealed, and reforms in Part D that will have meaningful impact for seniors should be pursued. Other reforms should include eliminating the coverage gap in Part D, reducing the government share in — 466 — Mandate for Leadership: The Conservative Promise the catastrophic tier, and requiring manufacturers to bear a larger share. Until the IRA is repealed, an Administration that is required to implement it must do so in a way that is prudent with its authority, minimizing the harmful effects of the law’s policies and avoiding even worse unintended consequences.30 Medicaid. Over the past 45 years, Medicaid and the health safety net have evolved into a cumbersome, complicated, and unaffordable burden on nearly every state. The program is failing some of the most vulnerable patients; is a prime target for waste, fraud, and abuse; and is consuming more of state and federal budgets. The dramatic increase in Medicaid expenditures is due in large part to the ACA (Obamacare), which mandates that states must expand their Medicaid eligibility standards to include all individuals at or below 138 percent of the federal poverty level (FPL), and the public health emergency, which has prohibited states from performing basic eligibility reviews. The overlap of available benefits among the various health agencies has led to a complex, confusing system that is nearly impossible to navigate—even for recipients. Recipients are often faced with a “welfare cliff” of benefit losses as they earn above a certain amount, which is contrary to the fundamental purpose of empowering individuals to achieve economic independence. Benefits increasingly involve nonmedical services such as air conditioning and housing, many of which are already handled by departments other than HHS. Improper payments within Medicaid are higher than those of any other federal program. These payments are evidence of the inappropriateness of Medicaid’s expansion, which, stemming largely from public health emergency maintenance of effort (MOE) requirements and the Affordable Care Act, has crowded out the primary targets of these programs: those who are most in need. True health care reform cannot be accomplished in a bureaucratic silo or only through Medicaid and health safety net programs. Reform of the tax code is also essential to genuine, effective reform of our health care system. All components of the health care system should be part of the reform efforts, and it is imperative that the system be modified to assist states with their current programs. Therefore, the next Administration should: l Reform financing. Allow states to have a more flexible, accountable, predictable, transparent, and efficient financing mechanism to deliver medical services. This system should include a more balanced or blended match rate, block grants, aggregate caps, or per capita caps. Any financial system should be designed to encourage and incentivize innovation and the efficient delivery of health care services. Federal and state financial participation in the Medicaid program should be rational, predictable, and reasonable. It should also incentivize states to save money and improve the quality of health care.
Introduction
— 306 — Mandate for Leadership: The Conservative Promise programs,104 and they focus on research and promotion of commodities such as beef and eggs. Marketing orders cover research and promotion, but also cover issues such as quality regulations and volume controls. The latter issue, volume controls, is a means to restrict supply, which drives up prices for consumers. Fortunately, there are few active volume controls.105 Marketing orders and checkoff programs are some of the most egregious pro- grams run by the USDA. They are, in effect, a tax—a means to compel speech—and government-blessed cartels. Instead of getting private cooperation, they are tools for industry actors to work with government to force cooperation. The next Administration should: l Reduce the number and scope of marketing orders and checkoff programs. The USDA should reject any new requests for marketing orders and checkoff programs to the extent authorized by law and eliminate existing programs when possible. While the programs work differently, there are often petition processes and other ways that make it difficult for affected parties to get rid of the marketing orders and checkoff programs,106 and the USDA itself may not even be required to honor requests to terminate a program.107 The USDA should make the process easier. Further, the USDA should reject any effort to bring back volume controls to limit supplies of commodities. l Work with Congress to eliminate marketing orders and checkoff programs. These programs should be eliminated, and if industry actors want to collaborate, they should do so through private means, not using the government to compel cooperation. l Promote legislation that would require regular votes. There should be regular voting for parties subject to checkoff programs and marketing orders. For example, the voting should occur at least every five years, to determine whether a marketing order or checkoff program should continue. The USDA should be required to honor the results of such a vote. Through regular voting, parties can demonstrate their support for a marketing order or checkoff program and ensure that those administering them will be held accountable. Focus on Trade Policy, Not Trade Promotion. The USDA’s Foreign Agri- cultural Service (FAS) covers numerous issues, including “trade policy,” which is a reference to removing trade barriers, among other things, to ensure an envi- ronment conducive to trade.108 It also covers trade promotion.109 This includes programs like the Market Access Program110 that subsidizes trade associations, — 307 — Department of Agriculture businesses, and other private entities to market and promote their products overseas. FAS should play a proactive and leading role to help open upmarkets for American farmers and ranchers. There are numerous barriers, such as sani- tary and phytosanitary measures, blocking American agricultural products from gaining access to foreign markets.111 However, FAS should not help businesses and industries promote their exports, something these businesses and industries can and should do on their own. The next Administration should: l Push legislation to repeal export promotion programs. The USDA should work with Congress to repeal market development programs like the Market Access Program and similar programs. Remove Obstacles for Agricultural Biotechnology. Innovation is critical to agricultural production and the ability to meet future food needs. The next Admin- istration should embrace innovation and technology, not hinder its use—especially because of scare tactics that ignore sound science. One of the key innovations in agriculture is genetic engineering. According to the USDA, “[C]urrently, over 90 percent of U.S. corn, upland cotton, and soybeans are produced using GE [genet- ically engineered] varieties.”112 Despite the importance of agricultural biotechnology, in 2016, Congress passed a federal mandate to label genetically engineered food.113 This legislation was argu- ably just a means to try to provide a negative connotation to GE food. There are other challenges as well for agricultural biotechnology. For example, Mexico plans to ban the importation of U.S. genetically modified yellow corn.114 The next Administration should: l Counter scare tactics and remove obstacles. The USDA should strongly counter scare tactics regarding agricultural biotechnology and adopt policies to remove unnecessary barriers to approvals and the adoption of biotechnology. l Repeal the federal labeling mandate. The USDA should work with Congress to repeal the federal labeling law, while maintaining federal preemption, and stress that voluntary labeling is allowed. l Use all tools available to remove improper trade barriers against agricultural biotechnology. The USDA should work closely with the Office of the United States Trade Representative to remove improper barriers imposed by other countries to block U.S. agricultural goods.
Introduction
— 467 — Department of Health and Human Services l Direct dollars to beneficiaries more effectively and responsibly. The current funding structure for the Medicaid program rewards expansions, lacks transparency, and promotes financing gimmicks. CMS should: 1. End state financing loopholes. 2. Reform payments to hospitals for uncompensated care. 3. Replace the enhanced match rate with a fairer and more rational match rate. 4. Restructure basic financing and put the program on a more fiscally predictable budget (which should include reform of Disproportionate Share Hospital payments to hospitals).31 l Strengthen program integrity. Make program integrity a top priority and the responsibility of the states. To protect the taxpayers’ investment: 1. Incentivize states. An enhanced contingency fee should be paid to states that successfully increase their efforts to decrease waste, fraud, and abuse. The current system’s IT development 90/10 matching rate should be allowed for improvements in states’ current fraud and abuse and eligibility systems. Innovative programs that show a positive return on investment for both the state and federal governments should be allowed without the onerous waiver process. 2. Improve Medicaid eligibility standards to protect those in need. As Medicaid enrollment continues to climb, it is imperative that there are appropriate and accurate eligibility standards to ensure that the program remains focused on serving those who are in need. To this end, CMS should: a. Hold states accountable for improper eligibility determinations. b. Require more robust eligibility determinations. c. Strengthen asset test determinations within Medicaid.32 3. Conduct oversight and reform of managed care.33 l Incentivize personal responsibility. CMS should allow states to ensure that Medicaid recipients have a stake in their personal health care and a say in decisions related to the Medicaid program. Personal responsibility
Showing 3 of 5 policy matches
About These Correlations
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.