HR1244-119

Introduced

To amend title XVIII of the Social Security Act to require that coinsurance for drugs under Medicare part D be based on the drug’s actual acquisition cost and not the drug’s wholesale acquisition cost.

119th Congress Introduced Feb 12, 2025

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

The bill mandates that Medicare Part D prescription drug plan sponsors calculate coinsurance based on actual acquisition cost (negotiated price net of manufacturer rebates/concessions) rather than wholesale acquisition cost when. It relies on compliance mandates, definition changes, and product standards. The main policy areas are Healthcare, Finance, and Trade.

Who Benefits and How

The available clause analysis does not identify a specific beneficiary group.

Who Bears the Burden and How

Pharmacy Benefit Managers (PBMs) administering Medicare Part D plans could lose revenue opportunities and Medicare Part D prescription drug plan sponsors (standalone PDPs and MA-PD plans) would take on compliance duties.

Key Provisions

  • Mandates that Medicare Part D prescription drug plan sponsors calculate coinsurance based on actual acquisition cost (negotiated price net of manufacturer rebates/concessions) rather than wholesale acquisition cost when...

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

The bill mandates that Medicare Part D prescription drug plan sponsors calculate coinsurance based on actual acquisition cost (negotiated price net of manufacturer rebates/concessions) rather than wholesale acquisition cost when.

Key Policy Areas

Healthcare, Finance, Trade

Primary Purpose

The bill mandates that Medicare Part D prescription drug plan sponsors calculate coinsurance based on actual acquisition cost (negotiated price net of manufacturer rebates/concessions) rather than wholesale acquisition cost when.

Policy Domains

Healthcare Finance Trade

Full Bill - Medicare Part D Coinsurance

Identified Costs
  • Pharmacy Benefit Managers (PBMs) administering Medicare Part D plans
  • Medicare Part D prescription drug plan sponsors (standalone PDPs and MA-PD plans)
Model: codex-gpt-5:bulk-repair | Version: bill_summary_v2 | Source: ih
Pharmacy Benefit Managers (PBMs) administering Medicare Part D plans:
Medicare Part D prescription drug plan sponsors (standalone PDPs and MA-PD plans):

Legislative Progress

Introduced
Introduced Committee Passed
Feb 12, 2025

Mr. Davis of North Carolina (for himself and Mr. Pfluger) …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Pharmacy Benefit Managers & Services
1 mention across 1 clause
-1 negative

Pharmacy Benefit Managers (PBMs) administering Medicare Part D plans

Financial Services
1 mention across 1 clause
-1 negative

Medicare Part D prescription drug plan sponsors (standalone PDPs and MA-PD plans)

1/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Healthcare Finance Trade
Actor Mappings
"cms"
→ Centers for Medicare & Medicaid Services
"plan_sponsors"
→ Prescription drug plan (PDP) and MA-PD plan sponsors
"the_secretary"
→ Secretary of Health and Human Services

Key Definitions

Terms defined in this bill

3 terms
"actual acquisition cost" §2

The negotiated price of the covered part D drug under the prescription drug plan or MA-PD plan, net of any manufacturer-provided price concessions (as defined under section 423.100 of title 42, Code of Federal Regulations), as reported for such drug in the Detailed DIR Report submitted by the sponsor or organization offering the plan for the previous plan year.

"Detailed DIR Report" §2_dir

Report submitted by plan sponsors showing Direct and Indirect Remuneration (rebates, discounts, and other price concessions) received from manufacturers.

"excluded drugs" §2_exclusions

Drugs described in subsection (b)(8) (catastrophic coverage) or (b)(9) (applicable beneficiaries under manufacturer discount program) are excluded from the actual acquisition cost requirement.

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology