To require the GAO to study the impact of price controls on pharmaceuticals.

1. Inserts new text wherever appropriate

   Inserts

   Inserted: SEC. . GAO STUDY OF PHARMACEUTICAL PRICE CONTROLS AND PATENT PROTECTIONS IN THE G-7 COUNTRIES.

   Inserted: (a) Study.--The Comptroller General of the United States shall conduct a study of price controls imposed on pharmaceuticals in France, Germany, Italy, Japan, the United Kingdom and Canada to review the impact such regulations have on consumers, including American consumers, and on innovation in medicine. Such study shall include--

   Inserted: (1) The pharmaceutical price control structure in each country for a wide range of pharmaceuticals, compared with average pharmaceutical prices paid by Americans covered by private sector health insurance;

   Inserted: (2) The proportion of the cost for innovation borne by American consumers compared with consumers in the other six countries;

   Inserted: (3) A review of how closely the observed prices in regulated markets correspond to the prices that efficiently distribute common costs of production ("Ramsey prices");

   Inserted: (4) A review of any peer-reviewed literature that might show the health consequences to patients in the listed countries that result from the absence or delayed introduction of medicines, including the cost of not having access to medicines, in terms of lower life expectancy and lower quality of health;

   Inserted: (5) The impact on American consumers, in terms of reduced research into new or improved pharmaceuticals (including the cost of delaying the introduction of a significant advance in certain major diseases), if similar price controls were adopted in the United States;

   Inserted: (6) The existing standards under international conventions, including the World Trade Organization and the North American Free Trade Agreement, regarding regulated pharmaceutical prices, including any restrictions on anti-competitive laws that might apply to price regulations and how economic harm caused to consumers in markets without price regulations may be remedied;

   Inserted: (7) In parallel trade regimes, how much of the price difference between countries in the European Union is captured by middlemen and how much goes to benefit patients and health systems where parallel importing is significant; and

   Inserted: (8) How much cost is imposed on the owner of a property right from counterfeiting and from international violation of intellectual property rights for prescription medicines.

   Inserted: (b) Report.--Not later than 1 year after the date of enactment of this Act, the Comptroller General of the Untied States shall submit to Congress a report on the study conducted under subsection (A).

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   Original wording

   At the appropriate place, insert the following:

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As printed