[Congressional Record Volume 149, Number 88 (Monday, June 16, 2003)]
[Senate]
[Pages S7932-S7933]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 927. Mr. EDWARDS (for himself, Mr. Harkin, and Mr. Pryor) 
submitted an amendment intended to be proposed by him to the bill S. 1, 
to amend title XVIII of the Social Security Act to make improvements in 
the medicare program, to provide prescription drug coverage under the 
medicare program, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:


               ``minimum standards for eligible entities

       ``Sec. 1860   . (a) In General.--The Secretary shall not 
     award a contract to an eligible entity under this part unless 
     the Secretary finds that the eligible entity agrees to comply 
     with such terms and conditions as the Secretary shall 
     specify, including the following:


                    ``(  ) disclosure requirements:

       ``(a) Access To Negotiated prices.--
       ``Disclosure.--The eligible entity shall disclose to the 
     Administrator (at the time of bid submission under section 
     1860F and annually thereafter for the duration of the 
     contract, in a manner specified by the Administrator) all 
     discounts or rebates or other remuneration of price 
     concessions made available to the eligible entity or an agent 
     thereof by any source. The provisions of section

[[Page S7933]]

     1927(b)(3)(D) shall apply to information disclosed to the 
     Administrator under this paragraph. The annual disclosure to 
     the Administrator shall include, but shall not be limited 
     to--
       ``(A) the value, nature, and amount of any rebate, 
     discount, price concession or other form of direct or 
     indirect remuneration provided to the eligible entity, or any 
     agent thereof (such as formulary access fees, formulary 
     market share movement fees, pharmacy and therapeutic fees, 
     disease or patient management programs, administrative fees, 
     data processing fees, direct or indirect educational grants, 
     mail order supplier fees, or other forms of remuneration or 
     compensation) during the preceding calendar year by a drug 
     manufacturer, packer, distributor, pharmacy or other entity; 
     and
       ``(B) sufficient financial information to allow the 
     Administrator to publish annually specific information on the 
     total amount of discounts, price concessions or other 
     remuneration passed through to enrollees, as well as the 
     total revenues, operating costs and net profit (expressed 
     both in dollar and percentage terms) of the eligible entity 
     for each regional contract.
       ``(b) Eligible entitles shall report the same information 
     to the General Accounting Office, which is directed to report 
     annually to Congress on the status of the value, nature, and 
     amount of any rebate, discount, price concession or other 
     form of direct or indirect remuneration provided to the 
     eligible entity, or any agent thereof.
       ``(c) Audits and Reports.--To protect against fraud and 
     abuse and to ensure proper disclosures and accounting, the 
     Administrator shall on an annual basis audit the financial 
     statements and records of the eligible entity or 
     organization. Notwithstanding the provisions of section 
     1927(b)(3)(D), for each contract with an eligible entity the 
     Administrator shall publicly report the aggregate results of 
     such audits, as well as the disclosures made in subparagraph 
     (d)(2)(B) of this section
       ``(2) Use of rebated funds to reduce costs to 
     beneficiaries.--
       ``(A) The eligible entity agrees to allocate funds provided 
     to the entity or retained by the entity from a rebate, 
     discount, other reduction in price or a return of an 
     overpayment in the amount it is required to tender to acquire 
     covered pharmaceuticals as defined in Sec. 1860 _ so that the 
     amount paid by the participating beneficiary or its 
     predecessor in interest to obtain covered pharmaceuticals is 
     reduced in a proportion that is equal to not less than half 
     of the rebated, discounted, refunded, or otherwise retained 
     amount and that the rebate, discount, other reduction in 
     price or retained amount be applied to the covered 
     pharmaceutical class, category, active ingredient, or other 
     combination thereof for which the rebate, discount, other 
     reduction in price or retained amount was provided or 
     otherwise made available by the manufacturer, distributor, or 
     other party in interest.
       ``(a) Failure To Comply or Provision of False 
     Information.--Any eligible entity that enters into a contract 
     under this part that knowingly fails to comply with the terms 
     and conditions of this section or that knowingly provides 
     false information related to the terms and conditions of this 
     section is subject to a civil money penalty in an amount not 
     to exceed $100,000 for each instance in which funds described 
     in section (A) were not allocated in the prescribed manner or 
     where the eligible entity knowingly provides false 
     information related to actions required pursuant to section 
     (A). Such civil money penalties are in addition to other 
     penalties as may be prescribed by law. The provisions of 
     section 1128A (other than subsections (a) and (b)) shall 
     apply to a civil money penalty under this subparagraph in the 
     same manner as such provisions apply to a penalty or 
     proceeding under section 1128A(a).''.
                                 ______
                                 
  SA 928. Mr. CORNYN (for Mr. Crapo) proposed an amendment to the bill 
S. 520, to authorize the Secretary of the Interior to convey certain 
facilities to the Fremont-Madison Irrigation District in the State of 
Idaho; as follows:

       On page 2, lines 14 and 15, strike ``(Contract No. 1425-
     0901-09MA-0910-093310)'' and insert ``(Contract No. 1425-01-
     MA-10-3310)''.
       On page 3, line 10, strike ``No. 1425-0901-09MA-0910-
     093310'' and insert ``No. 1425-01-MA-10-3310''.
       On page 4, lines 1 and 2, strike ``1425-0901-09MA-0910-
     093310'' and insert ``1425-01-MA-10-3310''.
       On page 4, line 6, strike ``7-0907-0910-090W0179'' and 
     insert ``7-07-10-W0179''.

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