Prescription Drug Price Fairness Act - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act to: (1) grant the Secretary of Health and Human Services authority similar to that of the Secretary of Veterans Affairs to negotiate the lowest possible prices for outpatient prescription drugs; (2) include prices charged for covered outpatient drugs to certain Federal agencies in the determination of best price for such drugs under the Medicaid program; and (3) allow States, in entering into rebate agreements with manufacturers, to form pools to negotiate price concessions from the manufacturers for covered outpatient drugs.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2200 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2200
To amend part D of title XVIII of the Social Security Act to provide to
the Secretary of Health and Human Services authority similar to the
authority of the Secretary of Veterans Affairs to negotiate the lowest
possible prices for outpatient prescription drugs, to include in the
determination of best price for covered outpatient drugs under the
Medicaid Program prices charged by manufacturers to certain Federal
agencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 5, 2005
Mr. Ruppersberger introduced the following bill; which was referred to
the Committee on Energy and Commerce, and in addition to the Committee
on Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend part D of title XVIII of the Social Security Act to provide to
the Secretary of Health and Human Services authority similar to the
authority of the Secretary of Veterans Affairs to negotiate the lowest
possible prices for outpatient prescription drugs, to include in the
determination of best price for covered outpatient drugs under the
Medicaid Program prices charged by manufacturers to certain Federal
agencies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Prescription Drug Price Fairness
Act''.
SEC. 2. NEGOTIATION OF LOWEST POSSIBLE PRICES FOR PRESCRIPTION DRUGS
UNDER MEDICARE.
Section 1860D-11 of the Social Security Act (42 U.S.C. 1395w-111)
is amended by striking subsection (i) (relating to noninterference) and
by inserting the following:
``(i) Requirement to Negotiate for Lowest Prices.--In order to
ensure that beneficiaries enrolled under prescription drug plans and
MA-PD plans pay the lowest possible price for covered part D drugs, the
Secretary shall have and exercise authority similar to that of the
Secretary of Veterans Affairs to purchase prescription drugs in bulk
and to negotiate contracts with manufacturers of covered part D drugs,
consistent with the requirements and in furtherance of the goals of
providing quality care and containing costs under this part. In
exercising such authority, the Secretary shall negotiate the best
possible prices for such drugs.''.
SEC. 3. INCLUSION OF PRICES CHARGED FOR COVERED OUTPATIENT DRUGS TO
CERTAIN FEDERAL AGENCIES IN THE DETERMINATION OF BEST
PRICE FOR SUCH DRUGS UNDER THE MEDICAID PROGRAM.
(a) In General.--Clause (i) of section 1927(c)(1)(C) of the Social
Security Act (42 U.S.C. 1396r-8(c)(1)(C)) is amended by striking ``,
excluding--'' and all that follows and inserting a period.
(b) Conforming Amendments.--(1) Such section is further amended by
striking clause (iii).
(2) Section 1847A(c)(2) of the Social Security Act (42 U.S.C.
1395w-3a(c)(2)) is amended by striking subparagraph (A) and
redesignating the succeeding provision accordingly.
(3) Section 1860D-2(d)(1) of such Act (42 U.S.C. 1395w-102(d)(1))
is amended by striking subparagraph (C).
(4) Section 1860D-31(e)(1) of such Act (42 U.S.C. 1395w-131(e)(1))
is amended by striking subparagraph (D).
(c) Effective Date.--The amendments made by this section shall
apply with respect to payments for covered outpatient drugs furnished
on or after January 1, 2006.
SEC. 4. CLARIFICATION OF AUTHORITY FOR STATES TO NEGOTIATE TOGETHER TO
ACHIEVE GREATER DISCOUNTS FROM MANUFACTURERS OF COVERED
OUTPATIENT DRUGS.
Section 1927(a) of the Social Security Act (42 U.S.C. 1396r-8(a))
is amended by adding at the end the following new paragraph:
``(7) Authority for states to form pools to negotiate price
concessions.--In entering into agreements with manufacturers
under this section, States may form pools to negotiate price
concessions from the manufacturers for covered outpatients
drugs.''.
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Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
Referred to the Subcommittee on Health.
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