II 109th CONGRESS 1st Session S. 764 IN THE SENATE OF THE UNITED STATES April 12, 2005 Mr. Corzine (for himself and Mr. Lautenberg) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XVIII of the Social Security Act to improve the coordination of prescription drug coverage provided under State pharmaceutical assistance programs with the prescription drug benefit provided under the medicare program, and for other purposes.

1.

Short title

This Act may be cited as the Preserving Access to Affordable Drugs Act of 2005 .

2.

State as authorized representative

(a)

In general

Section 1860D–1(b)(1) of the Social Security Act (42 U.S.C. 1395w–101(b)(1)) is amended by adding at the end the following new subparagraph: (D)

State as authorized representative

A State Pharmaceutical Assistance Program (as defined in section 1860D–23(b)) may, at the option of the State operating the Program, act as the authorized representative for any part D eligible individual residing in the State who is enrolled in the Program or described in section 1935(c)(6)(A)(ii) in order to select one or more preferred prescription drug plans to enroll such an individual, so long as the individual is afforded the authority to decline such enrollment. A Program that acts as an authorized representative for an individual pursuant to the preceding sentence shall not be considered to have violated section 1860D–23(b)(2) solely because of the enrollment of such individual in a preferred prescription drug plan. . (b)

Conforming amendment to anti-Discrimination provision

Section 1860D–23(b)(2) of the Social Security Act (42 U.S.C. 1395w–133(b)(2)) is amended by inserting subject to 1860D–1(b)(1)(D), after which,.

3.

Facilitation of coordination

Section 1860D–24(c)(1) of the Social Security Act (42 U.S.C. 1395w–134(c)(1)) is amended by striking all methods of operation and inserting its own methods of operation, except that a PDP sponsor or MA organization may not require a State Pharmaceutical Assistance Program or an RX plan described in subsection (b) to apply such tools when coordinating benefits.

4.

Allowing medicaid wrap

Section 1935 of the Social Security Act (42 U.S.C. 1396u–5) is amended by striking subsection (d).

5.

Effective date

The amendments made by this Act shall take effect as if included in the enactment of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108–173; 117 Stat. 2066).