Afghan Adjustment Act

House Bill

H.R. 4895

119th Congress

Afghan Adjustment Act

In Committee

Introduced:Aug 5, 2025

Primary Sponsor

Frank J. Pallone Jr.

Representative

Democratic

NJ-6

Cosponsors

74

Quick Stats

Policy Area

Health

Summary

This bill would expand the Medicare Drug Price Negotiation Program to include more prescription drugs, including those covered by private insurance. It would also require drug manufacturers to provide rebates to the government for certain high-cost drugs that have price increases higher than inflation, regardless of whether the drugs are covered by Medicare or private insurance.

Latest Action

Referred to the Subcommittee on Health.

AI Summary

Plain-English explanation of this bill

This bill would expand the Medicare Drug Price Negotiation Program to include more prescription drugs, including those covered by private insurance. It would also require drug manufacturers to provide rebates to the government for certain high-cost drugs that have price increases higher than inflation, regardless of whether the drugs are covered by Medicare or private insurance.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

Lowering Drug Costs for American Families ActThis bill expands the Medicare Drug Price Negotiation Program to include additional drugs and drugs that are covered under private insurance. It also extends certain rebate requirements for covered drugs under Medicare to drugs that are covered under private insurance.Current law requires the Centers for Medicare & Medicaid Services (CMS) to negotiate maximum prices for brand-name drugs that do not have other generic equivalents and that account for the greatest Medicare spending; the CMS must eventually negotiate the prices of 20 drugs that are covered under Medicare in 2029 and each year thereafter.The bill requires the CMS to negotiate the prices of 50 drugs beginning in 2029. It also applies the negotiated maximum prices under the program to drugs that are covered under private health insurance, unless the insurer opts out. The CMS, Department of Labor, and Department of Treasury must publish a list of insurers that choose to opt out; insurers must also publicly disclose their decision to opt out.Current law also requires drug manufacturers to issue rebates to the CMS for brand-name drugs without generic equivalents under Medicare that cost $100 or more per year per individual and for which prices increase faster than inflation. The bill extends these requirements to drugs that are covered under private insurance.

Key Points

Main provisions of the bill

Expands the number of drugs subject to price negotiation under Medicare from 20 to 50 starting in 2029.
Applies the negotiated maximum prices to drugs covered by private insurance, unless the insurer chooses to opt out.
Requires drug manufacturers to provide rebates to the government for high-cost drugs with prices rising faster than inflation, for drugs covered by both Medicare and private insurance.

How This Impacts Americans

Potential effects on citizens and communities

This bill would affect Medicare beneficiaries and people with private health insurance, by potentially lowering the costs of certain prescription drugs. Drug manufacturers would also be impacted, as they would have to negotiate prices and provide rebates for a larger number of their products.

Policy Areas

Primary Policy Area

Health

Related Subjects

Government information and archives

Health care costs and insurance

Medicare

Prescription drugs

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

4895, 119th Congress (2025). "Afghan Adjustment Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-4895