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Capitol Health Call
March 10, 2015

Bill Would Require Law-Breaking Drug Companies to Help Fund Research

JAMA. 2015;313(10):1004. doi:10.1001/jama.2015.1540

On January 22, Sen Elizabeth Warren (D, Mass) introduced the Medical Innovation Act, which targets blockbuster drug companies that break the law and opt to enter into a settlement agreement with the government to avoid a trial. The companies would have to pay a small portion of their profits over 5 years to the National Institutes of Health (NIH) and Food and Drug Administration (FDA). The NIH and FDA would use the money to fund research focusing on new treatments, especially for diseases that represent a disproportionate amount of government spending through such programs as Medicare and Medicaid.