PolicyBrief
H.R. 3493
119th CongressMay 19th 2025
Global Fairness in Drug Pricing Act
IN COMMITTEE

The Global Fairness in Drug Pricing Act aims to lower U.S. prescription drug costs by establishing international price targets, facilitating safe importation, cracking down on anticompetitive behavior, and studying global pricing impacts.

Ro Khanna
D

Ro Khanna

Representative

CA-17

LEGISLATION

Proposed 'Global Fairness' Bill Mandates Drug Price Targets Within 30 Days, Linking US Costs to International Rates

The Global Fairness in Drug Pricing Act is a straight shot at one of the biggest budget killers for American families: prescription drug costs. This bill targets the massive price difference between what we pay for medication here and what people pay for the exact same drugs in other developed countries. Essentially, it tells the federal government to use international prices as a benchmark to drive down what consumers in the U.S. shell out.

The 'Most-Favored-Nation' Price Tag

Here’s the core mechanism: the bill requires the Secretary of Health and Human Services (HHS) to move fast—within 30 days of the bill becoming law—to start the rulemaking process for setting “most-favored-nation” price targets for drugs. Think of it like this: if France, Germany, and Japan are paying $50 for a drug, the goal is to make sure Americans aren't paying $500. For anyone managing a chronic condition, like diabetes or rheumatoid arthritis, this could mean the difference between budgeting hundreds or thousands of dollars a month for necessary medication. This is a massive move, and while the bill is clear on the deadline, the actual criteria for setting that target price are left to HHS to figure out, which is where things could get complicated or slow down.

Opening the Border (Carefully) to Cheaper Drugs

For years, people have looked north to Canada for cheaper prescriptions. This bill addresses that by setting up a framework for drug importation. However, it’s not a free-for-all. Before the HHS Secretary can allow individuals to import cheaper drugs, they have to officially certify two things to Congress: first, that importing won’t harm public health and safety, and second, that it will actually lead to a significant drop in drug costs for Americans. That “significant drop” part is subjective, and it’s a hurdle that could potentially delay the importation program indefinitely if HHS can’t prove the cost savings are substantial. The bill also requires HHS to define when they will consistently grant waivers for case-by-case importation from developed nations known for low prices. This is designed to give consumers a reliable path to access cheaper medicine safely.

Putting the FTC and DOJ on Watch

It’s not just about setting prices; it’s about enforcement. The bill directs the Attorney General and the Federal Trade Commission (FTC) to actively use existing antitrust laws (like the Sherman Act) to crack down on drug manufacturers engaged in anticompetitive behavior. This means if a drug company is found to be using unfair business practices—like blocking generics or colluding on prices—the government is explicitly told to step in. For consumers, this is a signal that the government is trying to ensure that competition, not corporate maneuvering, dictates the market. This provision directly impacts pharmaceutical manufacturers, who could face increased scrutiny and legal action if their business practices are deemed unfair.

The Global Cost Investigation

Finally, the bill tasks the Commerce Department and the U.S. Trade Representative with a study due in 180 days. This study has to investigate whether drug manufacturers are using "unreasonable or discriminatory" actions that hurt U.S. national security or force American patients to cover the cost of global research and development. They also need to figure out if manufacturers are artificially suppressing prices overseas just to keep U.S. prices high. This study acknowledges a common concern: that the U.S. consumer essentially subsidizes drug development for the rest of the world. The findings of this report could set the stage for future trade and regulatory actions, adding pressure on pharmaceutical companies to justify their pricing strategies both domestically and internationally.