[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5317 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5317

To amend part D of title XVIII of the Social Security Act to limit the 
    increase in premium costs for beneficiaries under the Medicare 
 prescription drug program to no more than the Social Security cost-of-
  living adjustment, and to direct the Secretary of Health and Human 
   Services to negotiate lower prescription drug prices on behalf of 
                        Medicare beneficiaries.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 7, 2008

  Mr. Wexler 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 amend part D of title XVIII of the Social Security Act to limit the 
    increase in premium costs for beneficiaries under the Medicare 
 prescription drug program to no more than the Social Security cost-of-
  living adjustment, and to direct the Secretary of Health and Human 
   Services to negotiate lower prescription drug prices on behalf of 
                        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 Prescription Drug 
Affordability Act of 2008''.

SEC. 2. LIMITING MEDICARE PART D COST INCREASES TO THE SOCIAL SECURITY 
              COST-OF-LIVING INCREASE.

    (a) In General.--Section 1860D-11(e)(2) of the Social Security Act 
(42 U.S.C. 1395w-111) is amended by adding at the end the following new 
subparagraph:
                    ``(E) Bid amount increase by no more than social 
                security cost-of-living increase.--
                            ``(i) In general.--The Secretary determines 
                        that the amount of the bid submitted for the 
                        plan year under subsection (b) is not greater 
                        than--
                                    ``(I) the amount of the bid 
                                approved for such plan for the previous 
                                plan year, increased by
                                    ``(II) the SS COLA percentage.
                            ``(ii) Exception for a plan with no 
                        previous plan year.--The requirement of clause 
                        (i) shall not apply with respect to a plan for 
                        which there was no previous plan year.
                            ``(iii) SS cola percentage defined.--For 
                        purposes of this subparagraph, the term `SS 
                        COLA percentage' with respect to a plan year in 
                        a calendar year is the percentage increase 
                        under section 215(i) in primary insurance 
                        amounts effective for December of the second 
                        previous calendar year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to plan years beginning on or after January 1, 2009.

SEC. 3. NEGOTIATION OF LOWER COVERED PART D DRUG PRICES ON BEHALF OF 
              MEDICARE BENEFICIARIES.

    (a) Negotiation by HHS.--Section 1860D-11 of the Social Security 
Act (42 U.S.C. 1395w-111) is amended by striking subsection (i) 
(relating to noninterference) and inserting the following:
    ``(i) Negotiation of Lower Drug Prices.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary shall negotiate with pharmaceutical 
        manufacturers the prices (including discounts, rebates, and 
        other price concessions) that may be charged to PDP sponsors 
        and MA organizations for covered part D drugs for part D 
        eligible individuals who are enrolled under a prescription drug 
        plan or under an MA-PD plan.
            ``(2) No change in rules for formularies.--
                    ``(A) In general.--Nothing in paragraph (1) shall 
                be construed to authorize the Secretary to establish or 
                require a particular formulary.
                    ``(B) Construction.--Subparagraph (A) shall not be 
                construed as affecting the Secretary's authority to 
                ensure appropriate and adequate access to covered part 
                D drugs under prescription drug plans and under MA-PD 
                plans, including compliance of such plans with 
                formulary requirements under section 1860D-4(b)(3).
            ``(3) Construction.--Nothing in this subsection shall be 
        construed as preventing the sponsor of a prescription drug 
        plan, or an organization offering an MA-PD plan, from obtaining 
        a discount or reduction of the price for a covered part D drug 
        below the price negotiated under paragraph (1).
            ``(4) Semi-annual reports to the congress.--Not later than 
        June 1, 2008, and every six months thereafter, the Secretary 
        shall submit to the Committees on Ways and Means, Energy and 
        Commerce, and Oversight and Government Reform of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report on negotiations conducted by the Secretary to achieve 
        lower prices for Medicare beneficiaries, and the prices and 
        price discounts achieved by the Secretary as a result of such 
        negotiations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall first 
apply to negotiations and prices for plan years beginning on January 1, 
2009.
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