[Congressional Record Volume 151, Number 49 (Thursday, April 21, 2005)]
[Senate]
[Page S4114]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 873. A bill to amend title XVIII of the Social Security Act to 
deliver a meaningful benefit and lower prescription drug prices under 
the medicare program; read the first time.
  Mr. DORGAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 873

       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 
     Savings and Choice Act of 2005''.

     SEC. 2. ESTABLISHMENT OF MEDICARE OPERATED PRESCRIPTION DRUG 
                   PLAN OPTION.

       (a) In General.--Subpart 2 of part D of the Social Security 
     Act is amended by inserting after section 1860D-11 the 
     following new section:


           ``MEDICARE OPERATED PRESCRIPTION DRUG PLAN OPTION

       ``Sec. 1860D-11A. (a) In General.--Notwithstanding any 
     other provision of this part, for each year (beginning with 
     2006), in addition to any plans offered under section 1860D-
     11, the Secretary shall offer one or more medicare operated 
     prescription drug plans (as defined in subsection (c)) with a 
     service area that consists of the entire United States and 
     shall enter into negotiations with pharmaceutical 
     manufacturers to reduce the purchase cost of covered part D 
     drugs for eligible part D individuals in accordance with 
     subsection (b).
       ``(b) Negotiations.--Notwithstanding section 1860D-11(i), 
     for purposes of offering a medicare operated prescription 
     drug plan under this section, the Secretary shall negotiate 
     with pharmaceutical manufacturers with respect to the 
     purchase price of covered part D drugs and shall encourage 
     the use of more affordable therapeutic equivalents to the 
     extent such practices do not override medical necessity as 
     determined by the prescribing physician. To the extent 
     practicable and consistent with the previous sentence, the 
     Secretary shall implement strategies similar to those used by 
     other Federal purchasers of prescription drugs, and other 
     strategies, to reduce the purchase cost of covered part D 
     drugs.
       ``(c) Medicare Operated Prescription Drug Plan Defined.--
     For purposes of this part, the term `medicare operated 
     prescription drug plan' means a prescription drug plan that 
     offers qualified prescription drug coverage and access to 
     negotiated prices described in section 1860D-2(a)(1)(A). Such 
     a plan may offer supplemental prescription drug coverage in 
     the same manner as other qualified prescription drug coverage 
     offered by other prescription drug plans.
       ``(d) Monthly Beneficiary Premium.--
       ``(1) Qualified prescription drug coverage.--The monthly 
     beneficiary premium for qualified prescription drug coverage 
     and access to negotiated prices described in section 1860D-
     2(a)(1)(A) to be charged under a medicare operated 
     prescription drug plan shall be uniform nationally. Such 
     premium for months in 2006 shall be $35 and for months in 
     succeeding years shall be based on the average monthly per 
     capita actuarial cost of offering the medicare operated 
     prescription drug plan for the year involved, including 
     administrative expenses.
       ``(2) Supplemental prescription drug coverage.--Insofar as 
     a medicare operated prescription drug plan offers 
     supplemental prescription drug coverage, the Secretary may 
     adjust the amount of the premium charged under paragraph (1).
       ``(3) Requirement for at least one plan with a $35 premium 
     in 2006.--The Secretary shall ensure that at least one 
     medicare operated prescription drug plan offered in 2006 has 
     a monthly premium of $35.''.
       (b) Conforming Amendments.--
       (1) Section 1860D-3(a) of the Social Security Act (42 
     U.S.C. 1395w-103(a)) is amended by adding at the end the 
     following new paragraph:
       ``(4) Availability of the medicare operated prescription 
     drug plan.--
       ``(A) In general.--A medicare operated prescription drug 
     plan (as defined in section 1860D-11A(c)) shall be offered 
     nationally in accordance with section 1860D-11A.
       ``(B) Relationship to other plans.--
       ``(i) In general.--Subject to clause (ii), a medicare 
     operated prescription drug plan shall be offered in addition 
     to any qualifying plan or fallback prescription drug plan 
     offered in a PDP region and shall not be considered to be 
     such a plan for purposes of meeting the requirements of this 
     subsection.
       ``(ii) Designation as a fallback plan.--Notwithstanding any 
     other provision of this part, the Secretary may designate the 
     medicare operated prescription drug plan as the fallback 
     prescription drug plan for any fallback service area (as 
     defined in section 1860D-11(g)(3)) determined to be 
     appropriate by the Secretary.''.
       (2) Section 1860D-13(c)(3) of such Act (42 U.S.C. 1395w-
     113(c)(3)) is amended--
       (A) in the heading, by inserting ``and medicare operated 
     prescription drug plans'' after ``Fallback plans''; and
       (B) by inserting ``or a medicare operated prescription drug 
     plan'' after ``a fallback prescription drug plan''.
       (3) Section 1860D-16(b)(1) of such Act (42 U.S.C. 1395w-
     116(b)(1)) is amended--
       (A) in subparagraph (C), by striking ``and'' after the 
     semicolon at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) payments for expenses incurred with respect to the 
     operation of medicare operated prescription drug plans under 
     section 1860D-11A.''.
       (4) Section 1860D-41(a) of such Act (42 U.S.C. 141(a)) is 
     amended by adding at the end the following new paragraph:
       ``(19) Medicare operated prescription drug plan.--The term 
     `medicare operated prescription drug plan' has the meaning 
     given such term in section 1860D-11A(c).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     101 of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2071).
                                 ______