Americans pay two to four times more than allied nations for the same medicines. The NSRA ends that by matching U.S. prescription drug prices to the median price paid across the G7 nations, automatically.
The NSRA sets the G7 median as the ceiling for U.S. drug prices. When a manufacturer exceeds it, an automatic compulsory-licensing framework activates, allowing generic production under fixed statutory royalty rates (8% standard, 12% orphan drug, 4% during a public-health emergency). Insulin is capped at $35 per month.
The mechanism preserves the patent holder's property interest through the royalty schedule and the Bayh-Dole march-in framework (35 U.S.C. § 203), avoiding a Fifth Amendment takings problem.
Independent analysis of G7 price differentials indicates roughly $55 billion in annual federal savings, which helps fund the NSRA's healthcare provisions without new broad-based taxes.
How much would insulin cost under the NSRA?
Insulin is capped at $35 per month under the NSRA's pharmaceutical parity title.
Does capping drug prices hurt medical innovation?
The NSRA preserves the patent holder's property interest through fixed statutory royalties and march-in licensing, targeting the price differential rather than eliminating the return on research.