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=== The Medical Innovation Prize Fund Act===
The Medical Innovation Prize Fund Act, introduced in 2013 and sponsored by Bernie Sanders was designed to transform the patent system into a prize system. It died in a previous session of Congress. The Act would enact a prize system for all ‘medical innovations relating to a drug, a biological product, or a new manufacturing process for a drug or biological product’ [https://www.govtrack.us/congress/bills/113/s627/summary]. The plan establishes an annual fee for health insurers to fund this Act, which would go into a Medical Innovation Prize Fund (MIPF). Prize payments would be distributed from MIPF, and the payments would total 0.5% of GDP from the preceding fiscal year [http://www.bu.edu/law/journals-archive/scitech/volume131/documents/wei_web.pdf].
Besides providing incentives to invest in R&D in new medicines, and allowing the government to target research in a specified area, this act also encourages parties to invest in major breakthrough drugs versus only improving drugs in existing classes. The MIPF would reward innovations based on incremental benefit, so the largest prizes would be given to first-in-class drugs. The value of the prizes will be determined based on the number of patients, incremental therapeutic benefits of the innovation, the pertinence of the innovation, and the improved efficiency of the manufacturing process for the drug.
→The Medical Innovation Prize Fund Act
2) System where patents are exchanged for compensation through an auction
3) Offer cash subsidy to consumers who value the patented product more than the marginal cost but cannot afford the patented product at a monopoly price
