Medical Innovation Act of 2024

The Medical Innovation Act of 2024 requires pharmaceutical companies that sell "covered blockbuster drugs" (drugs with over $1 billion in annual sales developed partly using federal research) and have entered into settlements exceeding $1 million for violations of laws like the False Claims Act to pay supplemental fees. These fees range from 0.75% to 1.5% of the company’s net income, based on settlement size, and must be paid by October 1 each year. Collected funds are distributed to the FDA and NIH to supplement existing medical research funding, prioritizing urgent needs like developing better treatments for unmet medical conditions, supporting early-career scientists, and addressing diseases disproportionately impacting Medicare/Medicaid patients. The bill mandates annual reports on payments and their use, ensuring funds do not replace but add to existing research budgets.