SMART Prices Act

The SMART Prices Act (S 1836) changes how Medicare negotiates drug prices. It increases the number of drugs eligible for negotiation from 15 to 50 per year starting in 2028, shortens the time drugs must be the sole source for eligibility from 7 to 3 years, and adjusts price ceiling percentages for negotiated drugs (e.g., raising the maximum fair price from 75% to 76% for some drugs). These changes directly affect Medicare Part D beneficiaries and pharmaceutical companies by altering the negotiation process and pricing caps. The bill modifies existing Medicare drug pricing rules without creating new programs, applying to initial price negotiations beginning in 2028.