To amend part D of title XVIII of the Social Security Act, as added by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to provide for negotiation of fair prices for Medicare prescription drugs.

December 9, 2003

Mr. DASCHLE (for himself, Ms. STABENOW, Mr. GRAHAM of Florida, Mr. KENNEDY, Mr. PRYOR, Mr. DORGAN, Mrs. BOXER, Mr. LAUTENBERG, Mr. BINGAMAN, Ms. MIKULSKI, Mr. JOHNSON, Mr. SCHUMER, Mr. KOHL, Ms. CANTWELL, and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend part D of title XVIII of the Social Security Act, as added by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to provide for negotiation of fair 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 `Medicare Prescription Drug Price Reduction Act'.

SEC. 2. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION DRUGS.

Section 1860D-11 of the Social Security Act, as added by section 101(a) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, 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.'.

END