# PLASMA Act Summary

## What This Bill Does

The PLASMA Act (Preserving Life-saving Access to Specialty Medicines in America Act) modifies how Medicare handles discounts on plasma-derived products—medications made from human blood or plasma. Currently, these products must receive the same manufacturer discounts as other drugs under Medicare's drug pricing program. This bill creates a special "phase-in" period that gradually reduces the discount requirement for plasma-derived products over several years, starting in 2026.

## How the Phase-In Works

Rather than immediately applying full discounts, manufacturers of plasma-derived products would pay reduced discounts that gradually increase over time:
- **2026-2027**: 98-99% of the negotiated price (minimal discount)
- **2028-2029**: 92-95% of the negotiated price
- **2030+**: 80-90% of the negotiated price (depending on patient circumstances)

The exact percentage depends on whether the patient has already met their annual out-of-pocket spending limit for prescription drugs.

## Who Is Affected

**Beneficiaries**: Medicare Part D beneficiaries (seniors and disabled individuals) who use plasma-derived products may see higher out-of-pocket costs since manufacturers won't be required to offer as steep discounts.

**Manufacturers**: Pharmaceutical companies producing plasma-derived products (used to treat conditions like hemophilia, immune deficiencies, and clotting disorders) would face reduced discount obligations, potentially increasing their revenue.

**Exceptions**: The bill excludes certain low-income beneficiaries and products from small manufacturers from these reduced discount requirements.

PLASMA Act

Tillis, Thomas

Preserving Life-saving Access to Specialty Medicines in America Act or the PLASMA ActThis bill phases-in certain price adjustments for plasma-derived products under the Medicare prescription drug benefit's Manufacturer Discount Program.Current law requires manufacturers of covered drugs under the Medicare prescription drug benefit to provide a 10% discount for covered drugs during the initial coverage phase (i.e., before a beneficiary reaches the out-of-pocket spending threshold) and a 20% discount during the catastrophic coverage phase (i.e., after a beneficiary reaches the out-of-pocket spending threshold).&nbsp;The bill phases-in discounts for plasma-derived products over several years, starting with a 1% discount in 2026 for both the initial and catastrophic coverage phases, and ending with a 10% discount beginning in 2030 for the initial coverage phase and a 20% discount beginning in 2032 for the catastrophic coverage phase.