[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5317 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5317
To amend part D of title XVIII of the Social Security Act to limit the
increase in premium costs for beneficiaries under the Medicare
prescription drug program to no more than the Social Security cost-of-
living adjustment, and to direct the Secretary of Health and Human
Services to negotiate lower prescription drug prices on behalf of
Medicare beneficiaries.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2008
Mr. Wexler 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 limit the
increase in premium costs for beneficiaries under the Medicare
prescription drug program to no more than the Social Security cost-of-
living adjustment, and to direct the Secretary of Health and Human
Services to negotiate lower prescription drug prices on behalf of
Medicare beneficiaries.
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 ``Medicare Prescription Drug
Affordability Act of 2008''.
SEC. 2. LIMITING MEDICARE PART D COST INCREASES TO THE SOCIAL SECURITY
COST-OF-LIVING INCREASE.
(a) In General.--Section 1860D-11(e)(2) of the Social Security Act
(42 U.S.C. 1395w-111) is amended by adding at the end the following new
subparagraph:
``(E) Bid amount increase by no more than social
security cost-of-living increase.--
``(i) In general.--The Secretary determines
that the amount of the bid submitted for the
plan year under subsection (b) is not greater
than--
``(I) the amount of the bid
approved for such plan for the previous
plan year, increased by
``(II) the SS COLA percentage.
``(ii) Exception for a plan with no
previous plan year.--The requirement of clause
(i) shall not apply with respect to a plan for
which there was no previous plan year.
``(iii) SS cola percentage defined.--For
purposes of this subparagraph, the term `SS
COLA percentage' with respect to a plan year in
a calendar year is the percentage increase
under section 215(i) in primary insurance
amounts effective for December of the second
previous calendar year.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to plan years beginning on or after January 1, 2009.
SEC. 3. NEGOTIATION OF LOWER COVERED PART D DRUG PRICES ON BEHALF OF
MEDICARE BENEFICIARIES.
(a) Negotiation by HHS.--Section 1860D-11 of the Social Security
Act (42 U.S.C. 1395w-111) is amended by striking subsection (i)
(relating to noninterference) and inserting the following:
``(i) Negotiation of Lower Drug Prices.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall negotiate with pharmaceutical
manufacturers the prices (including discounts, rebates, and
other price concessions) that may be charged to PDP sponsors
and MA organizations for covered part D drugs for part D
eligible individuals who are enrolled under a prescription drug
plan or under an MA-PD plan.
``(2) No change in rules for formularies.--
``(A) In general.--Nothing in paragraph (1) shall
be construed to authorize the Secretary to establish or
require a particular formulary.
``(B) Construction.--Subparagraph (A) shall not be
construed as affecting the Secretary's authority to
ensure appropriate and adequate access to covered part
D drugs under prescription drug plans and under MA-PD
plans, including compliance of such plans with
formulary requirements under section 1860D-4(b)(3).
``(3) Construction.--Nothing in this subsection shall be
construed as preventing the sponsor of a prescription drug
plan, or an organization offering an MA-PD plan, from obtaining
a discount or reduction of the price for a covered part D drug
below the price negotiated under paragraph (1).
``(4) Semi-annual reports to the congress.--Not later than
June 1, 2008, and every six months thereafter, the Secretary
shall submit to the Committees on Ways and Means, Energy and
Commerce, and Oversight and Government Reform of the House of
Representatives and the Committee on Finance of the Senate a
report on negotiations conducted by the Secretary to achieve
lower prices for Medicare beneficiaries, and the prices and
price discounts achieved by the Secretary as a result of such
negotiations.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act and shall first
apply to negotiations and prices for plan years beginning on January 1,
2009.
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