[House Report 107-545]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-545

======================================================================



 
MEDICARE MODERNIZATION AND PRESCRIPTION DRUG ACT OF 2002 (SECTION 921: 
  GRANTS TO HEALTH CARE PROVIDERS TO IMPLEMENT ELECTRONIC PRESCRIPTION 
  DRUG PROGRAMS)

                                _______
                                

 June 26, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4989]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4989) to amend the Public Health Service Act to 
provide for grants to health care providers to implement 
electronic prescription drug programs, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
Statement of General Performance Goals and Objectives............     2
New Budget Authority, Entitlement Authority, and Tax Expenditures     2
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     3
Advisory Committee Statement.....................................     3
Constitutional Authority Statement...............................     3
Applicability to Legislative Branch..............................     3
Section-by-Section Analysis of the Legislation...................     3
Changes in Existing Law Made by the Bill, as Reported............     3

                          Purpose and Summary

    H.R. 4989 is intended to provide health care professionals 
with funding to ensure that they can quickly implement programs 
of electronic prescribing.

                  Background and Need for Legislation

    Section 1860C(d)(3) requires that prescriptions be 
submitted via electronic technology, except in emergency 
circumstances. Electronic prescriptions are a highly effective 
method to help reduce and often eliminate medication errors 
that increase the costs to the health care system. Electronic 
prescribing technologies also help to save beneficiaries on 
each prescription by aiding in formulary compliance. Many 
health care practitioners are using, or are planning to use, 
electronic prescribing technology. The Committee believes that 
it is important to provide funding to health care professionals 
so that they can quickly adopt electronic prescription 
technologies into their practices.

                                Hearings

    The Committee on Energy and Commerce has not held hearings 
on the legislation.

                        Committee Consideration

    On Thursday, June 20, 2002, the Full Committee met in open 
markup session and favorably ordered reported a Committee Print 
on Promotion of Electronic Prescription by voice vote, without 
amendment, a quorum being present. Chairman Tauzin then 
introduced H.R. 4989 to reflect the Committee's action.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 4989 reported. A motion by Mr. Tauzin to order H.R. 4989 
reported to the House, without amendment, was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has not held oversight 
or legislative hearings on this legislation.

         Statement of General Performance Goals and Objectives

    H.R. 4989 will provide grants to health care professionals 
to help them acquire the necessary equipment and training 
necessary to institute electronic prescribing programs into 
their practices.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
4989, to amend the Public Health Service Act to provide for 
grants to health care providers to implement electronic 
prescription drug programs, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974, which is 
included in the report to accompany H.R. 4984.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 is included in the report to 
accompany H.R. 4984.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. The estimate is included in the report to accompany H.R. 
4984.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 921. Program of Grants to Health Care Providers to Implement 
        Electronic Prescription Drug Programs

    Section 921 authorizes the Secretary to make grants for the 
purpose of assisting health care professionals who prescribe 
drugs and biologicals in implementing electronic prescription 
programs. Grants may only be made pursuant to a grant 
application submitted in a time, manner, and form approved by 
the Secretary. Such sums as are necessary are authorized to be 
appropriated for FY 2004 to carry out this legislation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                       PUBLIC HEALTH SERVICE ACT

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   TITLE III--GENERAL POWERS AND DUTIES OF PUBLIC HEALTH SERVICE

           *       *       *       *       *       *       *



                      PART P--ADDITIONAL PROGRAMS

           *       *       *       *       *       *       *


SEC. 399O. GRANTS TO HEALTH CARE PROVIDERS TO IMPLEMENT ELECTRONIC 
                    PRESCRIPTION DRUG PROGRAMS

  (a) In General.--The Secretary is authorized to make grants 
for the purpose of assisting health care providers who 
prescribe drugs and biologicals in implementing electronic 
prescription programs described in section 1860C(d)(3) of the 
Social Security Act.
  (b) Application.--No grant may be made under this section 
except pursuant to a grant application that is submitted in a 
time, manner, and form approved by the Secretary.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated for fiscal year 2004, such sums as may be 
appropriate to carry out this section.

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