Health Prizes Rewarding Innovation, Savings, and Effectiveness Act of 2014 - Amends the Public Health Service Act to require the Director of the National Institutes of Health (NIH) to design prize competitions open to competitors worldwide to realize innovations that improve health outcomes thereby reducing federal expenditures on health programs.
Requires the NIH to identify as the subject of the competitions diseases or health conditions for which the federal government spends at least $5 billion per year on prevention and treatment, and the research investment is disproportionately small in comparison to other diseases with similar or greater federal expenditures on treatment and prevention.
Directs the NIH to award contracts to perform a simulation of the designed prize competitions to assess the effectiveness of the design.
Requires the NIH to contract with private entities to implement the competitions.
Allows the Secretary of Health and Human Services (HHS) and the Food and Drug Administration (FDA) to provide competitors with guidance and access to testing facilities.
Prohibits the federal government from gaining an interest in intellectual property development by a participant without the participant's written consent.
Amends the Internal Revenue Code to exclude prizes from gross income.