H.R. 2542 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned, Apr 1, 2025
What this bill does
In plain words · AI-written from the official summaryExempts older drugs from some Medicaid rebates
When drug companies create a new version of an old drug (like a different pill form), they normally have to pay special rebates to Medicaid and Medicare. This bill lets them skip those rebates instead if they're researching a new way to use that old drug to treat a disease with a big unmet medical need. The drug has to be at least 10 years old and the new use has to matter to a lot of people on Medicaid, Medicare, or other federal health programs.
How it affects you
If you take Medicaid or Medicare, this could affect you indirectly by potentially changing which drugs manufacturers invest in and how much they charge. Drug manufacturers would have more incentive to research new uses for existing drugs, though the bill doesn't guarantee any specific new treatments will become available or affordable.
Read the official summary (Introduced in House, Apr 1, 2025)
Old Drugs, New Cures Act
This bill exempts manufacturers of certain long-standing drugs from paying specialized rebates under the Medicaid Drug Rebate Program and the Medicare Prescription Drug Inflation Rebate Program. (Under these programs, drug manufacturers pay rebates to state Medicaid programs for certain drugs covered under Medicaid and to the Centers for Medicare & Medicaid Services for certain drugs covered under Medicare.)
Specifically, manufacturers may request that a drug that would otherwise be considered a line extension under the Medicaid and Medicare rebate programs to instead be designated as a priority research drug. (A line extension refers to an oral dose of a new formulation of an existing drug, such as an extended release formulation, that would subject the drug to specialized rebates under the Medicaid and Medicare drug rebate programs.)
Under the bill, a drug qualifies as a priority research drug if (1) at least 10 years have elapsed since the drug was first approved, (2) the manufacturer is investigating a new use of the drug that would address a significant unmet need, and (3) the new use addresses a disease or condition that has a high prevalence among beneficiaries of Medicaid, Medicare, or other federal health care programs.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 2542
A BILL
Old Drugs, New Cures Act
Sponsor: Rep. Donald G. Davis (D-NC-1) · Introduced Apr 1, 2025 · Health · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 1, 2025: “Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.”