[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 696 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 696

  To require the Secretary of Health and Human Services to submit to 
  Congress a plan to include as a benefit under the medicare program 
   coverage of outpatient prescription drugs, and to provide for the 
                        funding of such benefit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 1999

 Mr. Wellstone introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Health and Human Services to submit to 
  Congress a plan to include as a benefit under the medicare program 
   coverage of outpatient prescription drugs, and to provide for the 
                        funding of such benefit.

    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 Coverage 
Act of 1999''.

SEC. 2. STUDY AND LEGISLATIVE PROPOSAL TO CONGRESS.

    (a) Study.--The Secretary of Health and Human Services shall 
conduct a study with respect to the establishment of an outpatient 
prescription drug benefit under the medicare program that provides for 
full coverage of outpatient prescription drugs for medicare 
beneficiaries.
    (b) Additional Matters Studied.--In conducting the study under 
subsection (a), the Secretary of Health and Human Services shall 
include a determination of whether Federal estate tax revenues, 
transferred to the Federal Hospital Insurance Trust Fund by reason of 
the amendments made by section 3 of this Act, are sufficient, in excess 
of the amount required, or insufficient to defray the costs of such 
outpatient prescription drug benefit.
    (c) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Health and Human Services 
shall submit to Congress a report containing a detailed description of 
the results of the study conducted pursuant to this section, and 
include in such report a legislative proposal to provide for such 
outpatient prescription drug benefit.

SEC. 3. TRANSFER OF FEDERAL ESTATE TAX REVENUES TO MEDICARE PROGRAM TO 
              OFFSET COSTS OF PRESCRIPTION DRUG BENEFIT.

    (a) Transfer to Federal Hospital Insurance Trust Fund.--Section 
1817(a) of the Social Security Act (42 U.S.C. 1395i(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1),
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the taxes imposed by chapter 11 of the Internal 
        Revenue Code of 1986 with respect to estates of citizens or 
        residents reported to the Secretary of the Treasury or his 
        delegate on tax returns under subtitle F of such Code, as 
        determined by the Secretary of the Treasury by applying the 
        applicable rate of tax under such chapter to such estate.''.
    (b) Establishment of Separate Account for Outpatient Prescription 
Drug Benefit.--Section 1817 of such Act (42 U.S.C. 1395i) is amended by 
adding at the end the following new subsection:
    ``(l) Outpatient Prescription Drug Account.--
            ``(1) Establishment.--There is hereby established in the 
        Trust Fund an expenditure account to be known as the 
        `Outpatient Prescription Drug Account'.
            ``(2) Crediting of funds.--The Managing Trustee shall 
        credit to the Outpatient Prescription Drug Account such amounts 
        as may be deposited in the Trust Fund pursuant to subsection 
        (a)(3).
            ``(3) Use of funds.--Funds credited to the Outpatient 
        Prescription Drug Account may only be used to pay for 
        outpatient prescription drugs furnished under this title.''.
    (c) Effective Date.--The amendments made by this section apply to 
payments received by the Secretary of the Treasury on or after the date 
of the enactment of this Act for taxes imposed by chapter 11 of the 
Internal Revenue Code of 1986.
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