[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.


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                    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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