II 110th CONGRESS 1st Session S. 273 IN THE SENATE OF THE UNITED STATES January 11, 2007 Mr. Specter introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend part D of title XVIII of the Social Security Act to authorize the Secretary of Health and Human Services to negotiate for lower prices for Medicare prescription drugs.

1.

Short title

This Act may be cited as the Prescription Drug and Health Improvement Act of 2007.

2.

Negotiating fair prices for medicare prescription drugs

(a)

Negotiating fair prices

(1)

In general

Section 1860D–11 of the Social Security Act (42 U.S.C. 1395w–111) is amended by striking subsection (i) (relating to noninterference) and by inserting the following: (i)

Authority To negotiate prices with manufacturers

In order to ensure that beneficiaries enrolled under prescription drug plans and MA–PD plans pay the lowest possible price, the Secretary shall have authority similar to that of other Federal entities that purchase prescription drugs in bulk to negotiate contracts with manufacturers of covered part D drugs, consistent with the requirements and in furtherance of the goals of providing quality care and containing costs under this part. . (2)

Effective date

The amendment made by paragraph (1) shall take effect on the date of enactment of this Act. (b)

HHS reports comparing negotiated prescription drug prices and retail prescription drug prices

Beginning in 2008, the Secretary of Health and Human Services shall regularly, but in no case less often than quarterly, submit to Congress a report that compares the prices for covered part D drugs (as defined in section 1860D–2(e) of the Social Security Act (42 U.S.C. 1395w–102(e)) negotiated by the Secretary pursuant to section 1860D–11(i) of such Act (42 U.S.C. 1395w–111(i)), as amended by subsection (a), with the average price a retail pharmacy would charge an individual who does not have health insurance coverage for purchasing the same strength, quantity, and dosage form of such covered part D drug.