II 109th CONGRESS 1st Session S. 1910 IN THE SENATE OF THE UNITED STATES October 24, 2005 Mr. Sununu introduced the following bill; which was read twice and referred to the Committee on Finance A BILL A bill to amend title XVIII of the Social Security Act to provide incentives to physicians for writing electronic prescriptions.

1.

Short title; Purpose

(a)

Short title

This Act may be cited as the Electronic Prescription Drug Act of 2005. (b)

Purpose

The purpose of this Act is to provide a budget neutral financial incentive for the rapid adoption of electronic prescribing under the new medicare prescription drug program.

2.

Electronic prescription incentives

Section 1860D–42 of the Social Security Act (42 U.S.C. 1395w–152) is amended by adding at the end the following new subsection: (d)

Electronic prescription incentives

(1)

Physician payments

For each electronic prescription written by a physician during the period beginning on January 1, 2006, and ending on December 31, 2009, the PDP sponsor of a prescription drug plan shall make a payment of an amount equal to— (A)$1.00, minus (B)an amount equal to the percentage of total claims that consist of electronic claims, as determined under subparagraphs (A) and (B) of paragraph (3) (expressed in cents). (2)

Dispensing fee offset reduction

For each non-electronic prescription written by a physician during the period described in paragraph (1), the PDP sponsor of a prescription drug plan shall reduce the dispensing fee established in accordance with section 1860D–4(c)(2)(E) by an amount equal to— (A)$1.00, minus (B)an amount equal to the percentage of total claims that consist of non-electronic claims, as determined under subparagraphs (A) and (B) of paragraph (3) (expressed in cents). (3)

Data used

(A)

Initial estimate

Subject to the update required under subparagraph (B), in determining the percentage of total claims that consist of electronic claims and the percentage of total claims that consist of non-electronic claims, the Secretary shall use an estimate of the number of electronic claims and non-electronic claims that will be submitted as of January 1, 2006. (B)

Update

For each 6 month period beginning after January 1, 2006, the Secretary shall update the estimate of the number of electronic claims and non-electronic claims used to determine the percentage of total claims that consist of electronic claims and the percentage of total claims that consist of non-electronic claims. To the extent feasible, the Secretary shall use the most recent data available, including real-time data on drug claims submitted under this part, to determine the percentage of total claims that consist of electronic claims and the percentage of total claims that consist of non-electronic claims.(4)

Regulations

The Secretary shall establish regulations and procedures for carrying out this subsection. .