S 31
112th CONGRESS
1st Session
S. 31
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.
IN THE SENATE OF THE UNITED STATES
January 25 (legislative day, January 5), 2011
Mr. FRANKEN 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.
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 `Prescription Drug and Health Improvement
Act of 2011'.
SEC. 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 the enactment of this Act.
(b) Biannual Reports to Congress- Not later than 1 year after the date
of the enactment of this Act, and every 6 months thereafter, the Secretary
of Health and Human Services shall submit to Congress a report on the
negotiations conducted by the Secretary under section 1860D-11(i) of
the Social Security Act (42 U.S.C. 1395w-111(i)), as amended by subsection
(a), including a description of how such negotiations are achieving
lower 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)) for Medicare beneficiaries.
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