To prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic drug into the market.
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preserve Access to Affordable Generics Act''.
SEC. 2. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES.
(a) Findings.--Congress finds the following: (1) In 1984, the Drug Price Competition and Patent Term Restoration Act (Public Law 98-417) (referred to in this Act as the ``1984 Act''), was enacted with the intent of facilitating the early entry of generic drugs while preserving incentives for innovation. (2) Prescription drugs make up 10 percent of the national health care spending but for the past decade have been one of the fastest growing segments of health care expenditures. (3) Until recently, the 1984 Act was successful in facilitating generic competition to the benefit of consumers and health care payers--although 67 percent of all prescriptions dispensed in the United States are generic drugs, they account for only 20 percent of all expenditures. (4) Generic drugs cost substantially less than brand name drugs, with discounts off the brand price sometimes exceeding 90 percent. (5) Federal dollars currently account for an estimated 30 percent of the $235,000,000,000 spent on prescription drugs in 2008, and this share is expected to rise to 40 percent by 2018. (6)(A) In recent years, the intent of the 1984 Act has been subverted by certain settlement agreements between brand companies and their potential generic competitors that make ``reverse payments'' which are...