Medicare drug negotiation delayed for plasma products through 2032

What it does

This bill delays the application of Medicare's drug-price negotiation rules to plasma-derived products (biologics made from human blood or plasma) by allowing manufacturers to charge higher prices for these drugs through 2025–2032. Instead of paying the full negotiated price, Medicare pays only 99–80% of it depending on the year and whether the patient has hit their out-of-pocket limit, phasing down to 80% by 2032. The bill exempts low-income beneficiaries and small manufacturers from this phase-in.

Why we flagged it

The bill creates a narrow exemption from Medicare's negotiated-pricing rules for a specific drug category (plasma-derived products), allowing manufacturers to charge above the negotiated price for seven years. This is a targeted subsidy to a sector of the pharmaceutical industry.

What the text implies

• The phase-in applies only to drugs marketed before August 16, 2022, creating a cutoff that protects existing products but does not shield new plasma-derived drugs from negotiation.
• Low-income beneficiaries (LIS) are exempt from the phase-in, meaning they pay the full negotiated price while higher-income beneficiaries subsidize manufacturers through higher out-of-pocket costs.
• The phase-in extends through 2032 (seven years), delaying full price negotiation longer than for other drug categories and potentially setting a precedent for sector-specific carve-outs.
• The bill does not cap the underlying negotiated price itself—it only reduces the discount manufacturers must offer, meaning the baseline price can still rise while the discount shrinks.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Medicare beneficiaries and the federal program will pay higher prices for plasma-derived drugs during the phase-in period (2026–2032), delaying the cost-control benefit of negotiated pricing. The bill transfers savings from the public to manufacturers of these specialty biologics.

Who stands to gain

• plasma-derived product manufacturers
• specialty pharmaceutical companies producing biologics from human blood/plasma

Named in the bill

Centers for Medicare & Medicaid Services (CMS), Medicare Part D, plasma-derived product manufacturers, Social Security Act Section 1860D–14C, low-income subsidy (LIS) beneficiaries

Where it stands

5 cosponsors: 3 Republicans, 2 Democrats.

• Feb 21, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 21, 2025 — Referred to House Committee on Ways and Means and House Committee on Energy and Commerce · Congress.gov: “Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

5 lobbying clients named this bill on 7 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,420,000 in lobbying spend. A filing names 2 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 78% of bills with at least one filing.

Richard Hudson, the sponsor, reported $1,708,144 in PAC receipts in the 2026 cycle.

• Grifols Shared Services North America Inc — $840,000 on 2 filings
• Csl Behring LLC — $380,000 on 1 filing
• Csl Behring — $110,000 on 2 filings
• Csl Behring LLC — $50,000 on 1 filing
• Csl Behring LLC — $40,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.