[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2181 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2181

To amend title XIX of the Social Security Act to provide for an offset 
from the Medicaid clawback for State prescription drug expenditures for 
            covered part D drugs for Medicare beneficiaries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 20, 2006

Mr. Lautenberg (for himself, Ms. Snowe, Mr. Schumer, Mr. Coleman, Mrs. 
    Feinstein, Mr. Pryor, Mr. DeWine, Mrs. Boxer, Mr. Menendez, Ms. 
 Collins, Mr. Dayton, Mr. Reed, Mr. Jeffords, Mrs. Lincoln, Mr. Leahy, 
  Mr. Wyden, Ms. Stabenow, Mr. Johnson, Mr. Kennedy, Mr. Dorgan, Mr. 
   Lieberman, Mrs. Clinton, Mr. Chafee, and Mr. Dodd) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To amend title XIX of the Social Security Act to provide for an offset 
from the Medicaid clawback for State prescription drug expenditures for 
            covered part D drugs for 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 State Reimbursement Act of 
2006''.

SEC. 2. FEDERAL RESPONSIBILITY FOR STATE PRESCRIPTION DRUG EXPENDITURES 
              FOR COVERED PART D DRUGS FOR MEDICARE BENEFICIARIES.

    Section 1935(c) of the Social Security Act (42 U.S.C. 1396v(c)) is 
amended--
            (1) in paragraph (1)(A), by striking ``Each of the 50 
        States'' and inserting ``Subject to paragraph (7), each of the 
        50 States''; and
            (2) by adding at the end the following new paragraph:
            ``(7) Offset for state prescription drug expenditures for 
        covered part d drugs for medicare beneficiaries.--
                    ``(A) In general.--The amount of payment for a 
                month (beginning with January 2006) under paragraph (1) 
                shall be reduced by an amount equal to the sum of--
                            ``(i) the amount (as documented by the 
                        State) that the State expended during the month 
                        for payment for covered part D drugs for part D 
                        eligible individuals who are enrolled in a 
                        prescription drug plan under part D of title 
                        XVIII but were unable to access on a timely 
                        basis prescription drug benefits to which they 
                        were entitled under such plan; and
                            ``(ii) interest on such amount (for the 
                        period beginning on the day after the date on 
                        which an expenditure described in subparagraph 
                        (A) is made and ending on the date on which 
                        payment is made under paragraph (1)) at a rate 
                        equal to the weighted average of interest on 3-
                        month marketable Treasury securities determined 
                        for such period, increased by 0.1 percentage 
                        point.
                    ``(B) Recovery of reduced payment from prescription 
                drug plans.--The Secretary shall provide for recovery 
                of payment reductions made under subparagraph (A) from 
                those prescription drug plans under part D of title 
                XVIII or MA-PD plans under part C of such title that 
                would otherwise be responsible for the expenditures 
                described in subparagraph (A)(i). Any such amounts 
                recovered shall be deposited into the Medicare 
                Prescription Drug Account in the Federal Supplementary 
                Medical Insurance Trust Fund.''.
                                 <all>