SMART Prices Act

The SMART Prices Act (S 1246) repeals a provision blocking states from negotiating Medicare drug prices and accelerates the Medicare Drug Price Negotiation Program. It increases the annual number of drugs eligible for negotiation from 10 to 40 starting in 2027, shortens the timeframes for qualifying drugs from 7 to 3 years, and adjusts price ceiling percentages (e.g., raising the maximum fair price cap for some drugs from 75% to 76%). These changes directly affect Medicare beneficiaries by potentially lowering drug costs and pharmaceutical companies by altering negotiation timelines and pricing rules. The bill aims to reduce Medicare drug spending through faster, more aggressive price negotiations.