[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 729 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 729

 To assure cost credibility of the Medicare prescription drug benefit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2005

  Mr. Stark 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 assure cost credibility of the Medicare prescription drug 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 Drug Cost Credibility Act 
of 2005''.

SEC. 2. COST CREDIBILITY FOR MEDICARE PRESCRIPTION DRUG BENEFIT.

    (a) Cost Credibility.--
            (1) In general.--If the net mandatory outlays for the 
        medicare prescription drug benefit for a fiscal year (as 
        contained in tables accompanying the Budget of the United 
        States submitted by the President for that fiscal year) exceed 
        the original CBO cost estimate of such benefit for that fiscal 
        year (as described in paragraph (2)), the Secretary shall, 
        notwithstanding section 1860D-11(i)(1) of the Social Security 
        Act (42 U.S.C. 1395w-111(i)(1)), utilize negotiating authority 
        in order to reduce the acquisition cost for prescription drugs. 
        Such authority shall apply for benefits for the calendar year 
        that begins in such fiscal year and for benefits for all 
        subsequent calendar years.
            (2) Original cbo cost estimate.--For purposes of paragraph 
        (1), the original CBO cost estimate for the medicare 
        prescription drug benefit for a fiscal year is the following 
        (as specified in the communication of November 20, 2003, of the 
        Director of the Congressional Budget Office to conferees for 
        ``CBO Estimate of Effect on Direct Spending and Revenues of 
        Conference Agreement on H.R. 1'' as the changes in direct 
        spending (outlays) attributable to the prescription drug 
        benefit (titleI)):
                    (A) For fiscal year 2006, $25.7 billion.
                    (B) For fiscal year 2007, $39.0 billion.
                    (C) For fiscal year 2008, $44.6 billion.
                    (D) For fiscal year 2009, $48.7 billion.
                    (E) For fiscal year 2010, $53.7 billion.
                    (F) For fiscal year 2011, $58.6 billion.
                    (G) For fiscal year 2012, $65.3 billion.
                    (H) For fiscal year 2013, $73.1 billion.
    (b) Conforming Amendment.--Section 1860D-11(i)(1) of the Social 
Security Act (42 U.S.C. 1395w-111(i)(1)) is amended by inserting 
``subject to section 2(a) of the Medicare Drug Cost Credibility Act of 
2005'' before ``may not interfere''.
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