[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3309 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3309

To amend title XIX of the Social Security Act to require, at the option 
  of a State, drug manufacturers to pay rebates to State prescription 
  drug discount programs as a condition of participation in a rebate 
agreement for outpatient prescription drugs under the Medicaid Program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2007

    Mr. Van Hollen (for himself, Mr. Allen, Mr. Stark, Mr. Welch of 
   Vermont, and Mr. Rahall) introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To amend title XIX of the Social Security Act to require, at the option 
  of a State, drug manufacturers to pay rebates to State prescription 
  drug discount programs as a condition of participation in a rebate 
agreement for outpatient prescription drugs under the Medicaid Program.

    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 ``Voluntary State Discount 
Prescription Drug Plan Act of 2007''.

SEC. 2. OPTIONAL STATE PRESCRIPTION DISCOUNT PROGRAM.

    (a) In General.--Section 1927(a) of the Social Security Act (42 
U.S.C. 1396r-8(a)), as amended by section 6002(a) of the Deficit 
Reduction Act of 2005 (Public Law 109-171), is amended by adding at the 
end the following:
            ``(8) Requirements relating to agreements for drugs 
        procured by individuals through optional state prescription 
        drug discount programs.--
                    ``(A) In general.--A manufacturer meets the 
                requirements of this paragraph if the manufacturer 
                enters into an agreement with the State to make rebate 
                payments for drugs covered by a State prescription drug 
                discount program in the same amounts as are paid by the 
                manufacturer to the State for such drugs under a rebate 
                agreement described in subsection (b). The previous 
                sentence shall only apply to a State that has elected 
                to establish an optional State prescription drug 
                discount program and to apply the provisions of such 
                sentence.
                    ``(B) Optional state prescription drug discount 
                program defined.--
                            ``(i) In general.--In this paragraph, the 
                        term `optional State prescription drug discount 
                        program' means a State program under which, 
                        with respect to a rebate period, not less than 
                        the amount equal to 95 percent of all the 
                        rebates paid to the State under agreements 
                        entered into under subparagraph (A) during such 
                        period is provided to eligible State residents 
                        in the form of discounted prices for the 
                        purchase of outpatient prescription drugs.
                            ``(ii) Eligible state resident.--For 
                        purposes of clause (i), the term `eligible 
                        State resident' means an individual who is a 
                        State resident and whose income does not exceed 
                        a percentage (specified under the optional 
                        State prescription drug discount program, but 
                        not to exceed 300 percent) of the income 
                        official poverty line (as defined by the Office 
                        of Management and Budget, and revised annually 
                        in accordance with section 673(2) of the 
                        Omnibus Budget Reconciliation Act of 1981) 
                        applicable to a family of the size involved.
                            ``(iii) Additional subsidies.--Nothing in 
                        this subparagraph shall be construed as--
                                    ``(I) requiring a State to expend 
                                State funds to carry out a State 
                                prescription drug discount program; or
                                    ``(II) prohibiting a State from 
                                electing to contribute State funds to a 
                                State prescription drug discount 
                                program to provide greater subsidies to 
                                eligible State residents for outpatient 
                                prescription drugs covered under the 
                                program.
                            ``(iv) No section 1115 waiver required to 
                        implement.--Nothing in this subparagraph shall 
                        be construed as requiring a State to obtain a 
                        waiver under section 1115 or otherwise of any 
                        requirement of this title to implement an 
                        optional State prescription drug discount 
                        program.
                    ``(C) No offset against medical assistance.--
                Amounts received by a State under an agreement entered 
                into under subparagraph (A) in any quarter shall not be 
                considered to be a reduction in the amount expended 
                under the State plan in the quarter for medical 
                assistance for purposes of section 1903(a)(1).''.
    (b) Conforming Amendment.--The first sentence of section 1927(a)(1) 
of such Act (42 U.S.C. 1396r-8(a)(1)) is amended, by striking ``and 
paragraph (6)'' and inserting ``, paragraph (6), and paragraph (8)''.
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