< Back to H.R. 1387 (107th Congress, 2001–2002)

Text of the Drug Availability and Health Care Access Improvement Act of 2001

This bill was introduced on April 4, 2001, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 4, 2001 (Introduced).

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HR 1387 IH

107th CONGRESS

1st Session

H. R. 1387

To amend the Social Security Act to improve access to prescription drugs for low-income Medicare beneficiaries, the Internal Revenue Code and other Acts to improve access to health care coverage for seniors, the self-employed, and children, and to amend the Federal Food, Drug, and Cosmetic Act to improve meaningful access to reasonably priced prescription drugs.

IN THE HOUSE OF REPRESENTATIVES

April 4, 2001

Mr. GANSKE (for himself, Mrs. EMERSON, Mr. FRANK, Mr. WYNN, Mr. HORN, Mr. GILCHREST, Mr. TRAFICANT, Mr. LEACH, Mr. JONES of North Carolina, Mr. JOHNSON of Illinois, Mr. SANDERS, Mr. GUTKNECHT, and Mr. TERRY) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To amend the Social Security Act to improve access to prescription drugs for low-income Medicare beneficiaries, the Internal Revenue Code and other Acts to improve access to health care coverage for seniors, the self-employed, and children, and to amend the Federal Food, Drug, and Cosmetic Act to improve meaningful access to reasonably priced 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; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Drug Availability and Health Care Access Improvement Act of 2001’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

TITLE I--MEDICAID PRESCRIPTION DRUG COVERAGE FOR LOW-INCOME MEDICARE BENEFICIARIES

      Sec. 101. Medicaid prescription drug coverage for low-income medicare beneficiaries.

TITLE II--IMPROVED ACCESS OF MEDICARE BENEFICIARIES TO MEDICARE+CHOICE PLANS

      Sec. 201. Improved access to Medicare+Choice plans through an increase in the minimum Medicare+Choice capitation rate.

TITLE III--IMPROVED ACCESS TO REASONABLY PRICED PRESCRIPTION DRUGS

      Sec. 301. Amendments to program for importation of certain prescription drugs by pharmacists and wholesalers.

TITLE I--MEDICAID PRESCRIPTION DRUG COVERAGE FOR LOW-INCOME MEDICARE BENEFICIARIES

SEC. 101. MEDICAID PRESCRIPTION DRUG COVERAGE FOR LOW-INCOME MEDICARE BENEFICIARIES.

    (a) IN GENERAL- Section 1902(a)(10) of the Social Security Act (42 U.S.C. 1396a(a)(10)) is amended--

      (1) by striking ‘and’ at the end of subparagraph (F);

      (2) by adding ‘and’ at the end of subparagraph (G); and

      (3) by inserting after subparagraph (G) the following new subparagraph:

        ‘(H) for making medical assistance available for prescribed drugs (in the same amount, duration, and scope as for individuals described in subparagraph (A)) for qualified medicare beneficiaries described in section 1905(p)(1) and for individuals who would be such qualified medicare beneficiaries but for the fact that their income exceeds the income level established by the State under section 1905(p)(2) but is less than 175 percent of the official poverty line (referred to in such section) for a family of the size involved;’.

    (b) 100 PERCENT FEDERAL FINANCING OF ADDITIONAL COSTS- Section 1903(a) of such Act (42 U.S.C. 1396b(a)) is amended--

      (1) by redesignating paragraph (7) as paragraph (8); and

      (2) by adding after paragraph (6) the following new paragraph:

      ‘(7) an amount equal to 100 percent of amounts as expended as medical assistance for prescribed drugs described in section 1902(a)(10)(H) to individuals who are eligible for such assistance only on the basis of such section; and’.

    (c) PERMITTING CHARGING OF SLIDING SCALE PREMIUMS FOR QUALIFYING INDIVIDUALS WITH INCOMES ABOVE 135 PERCENT OF POVERTY LINE- Section 1916 of such Act Social Security Act is amended--

      (1) in subsection (b), by striking ‘or (E)’ and inserting ‘, (E), or (H)’; and

      (2) in subsection (d)--

        (A) by inserting ‘(1)’ after ‘(d)’, and

        (B) by adding at the end the following new paragraph:

    ‘(2)(A) With respect to an individual described in section 1902(a)(10)(H) whose income (as determined under section 1905(p)(1)(B)) exceeds 135 percent of the official poverty line referred to in that section, the State plan of a State shall provide for the charging of a premium (expressed as a percentage of the average actuarial cost of the benefits described in section 1902(a)(10)(H) provided with respect to individuals described in such section) according to a sliding scale under which such percentage increases from 0 percent to 100 percent, in reasonable increments (as determined by the Secretary), as the individual’s income increases from 135 percent of such poverty line to 175 percent of such poverty line.

    ‘(B) A State shall not require prepayment of a premium imposed pursuant to subparagraph (A) and shall

not terminate eligibility of an individual for medical assistance under this title on the basis of failure to pay any such premium until such failure continues for a period of not less than 60 days. The State may waive payment of any such premium in any case where the State determines that requiring such payment would create an undue hardship.

    ‘(C) A State may permit State or local funds available under other programs to be used for payment of a premium imposed under subparagraph (A). Payment of a premium with such funds shall not be counted as income to the individual with respect to whom such payment is made.’.

    (d) EFFECTIVE DATE- The amendments made by this section take effect on the first day of the first year that begins more than 6 months after the date of the enactment of this Act.

TITLE II--IMPROVED ACCESS OF MEDICARE BENEFICIARIES TO MEDICARE+CHOICE PLANS

SEC. 201. IMPROVED ACCESS TO MEDICARE+CHOICE PLANS THROUGH AN INCREASE IN THE MINIMUM MEDICARE+CHOICE CAPITATION RATE.

    (a) IN GENERAL- Section 1853(c)(1)(B) of the Social Security Act (42 U.S.C. 1395w-23(c)(1)(B)), as amended by section 601(a) of Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (as enacted into law by section 1(a)(6) of Public Law 106-554), is amended--

      (1) by redesignating clause (iv) as clause (v);

      (2) by inserting after clause (iii) the following new clause:

          ‘(iv) For 2002--

            ‘(I) for any area in the 50 States and the District of Columbia, $600; and

            ‘(II) for any other area, the minimum amount specified in clause (iii) for that area for 2001 increased by the national per capita Medicare+Choice growth percentage, described in paragraph (6)(A) for 2002.’; and

      (3) in clause (v), as so redesignated--

        (A) by striking ‘2002’ and inserting ‘2003’; and

        (B) by striking ‘or clause (iii)’ and inserting ‘or clause (iv)’.

    (b) EFFECTIVE DATE- The amendments made by subsection (a) apply to years beginning with 2002.

TITLE III--IMPROVED ACCESS TO REASONABLY PRICED PRESCRIPTION DRUGS

SEC. 301. AMENDMENTS TO PROGRAM FOR IMPORTATION OF CERTAIN PRESCRIPTION DRUGS BY PHARMACISTS AND WHOLESALERS.

    Section 804 of the Federal Food, Drug, and Cosmetic Act (as added by section 745(c)(2) of Public Law 106-387) is amended--

      (1) by striking subsections (e) and (f) and inserting the following subsections:

    ‘(e) TESTING; APPROVED LABELING-

      ‘(1) TESTING- Regulations under subsection (a)--

        ‘(A) shall require that testing referred to in paragraphs (6) through (8) of subsection (d) be conducted by the importer of the covered product pursuant to subsection (a), or the manufacturer of the product;

        ‘(B) shall require that, if such tests are conducted by the importer, information needed to authenticate the product being tested be supplied by the manufacturer of such product to the importer; and

        ‘(C) shall provide for the protection of any information supplied by the manufacturer under subparagraph (B) that is a trade secret or commercial or financial information that is privileged or confidential.

      ‘(2) APPROVED LABELING- For purposes of importing a covered product pursuant to subsection (a), the importer involved may use the labeling approved for the product under section 505, notwithstanding any other provision of law.

    ‘(f) DISCRETION OF SECRETARY REGARDING TESTING- The Secretary may waive or modify testing requirements described in subsection (d) if, with respect to specific countries or specific distribution chains, the Secretary has entered into agreements or otherwise approved arrangements that the Secretary determines ensure that the

covered products involved are not adulterated or in violation of section 505.’;

      (2) by striking subsections (h) and (i) and inserting the following subsections:

    ‘(h) PROHIBITED AGREEMENTS; NONDISCRIMINATION-

      ‘(1) PROHIBITED AGREEMENTS- No manufacturer of a covered product may enter into a contract or agreement that includes a provision to prevent the sale or distribution of covered products imported pursuant to subsection (a).

      ‘(2) NONDISCRIMINATION- No manufacturer of a covered product may take actions that discriminate against, or cause other persons to discriminate against, United States pharmacists, wholesalers, or consumers regarding the sale or distribution of covered products.

    ‘(i) STUDY AND REPORT-

      ‘(1) STUDY- The Comptroller General of the United States shall conduct a study on the imports permitted under this section, taking into consideration the information received under subsection (a). In conducting such study, the Comptroller General shall--

        ‘(A) evaluate importers’ compliance with regulations, determine the number of shipments, if any, permitted under this section that have been determined to be counterfeit, misbranded, or adulterated; and

        ‘(B) consult with the United States Trade Representative and United States Patent and Trademark Office to evaluate the effect of importations permitted under this section on trade and patent rights under Federal law.

      ‘(2) REPORT- Not later than 5 years after the effective date of final regulations issued pursuant to this section, the Comptroller General of the United States shall prepare and submit to Congress a report containing the study described in paragraph (1).’;

      (3) in subsection (k)(2)--

        (A) by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively; and

        (B) by inserting before subparagraph (B) (as so redesignated) the following subparagraph:

        ‘(A) The term ‘discrimination’ includes a contract provision, a limitation on supply, or other measure which has the effect of providing United States pharmacists, wholesalers, or consumers access to covered products on terms or conditions that are less favorable than the terms or conditions provided to any foreign purchaser of such products.’;

      (4) by striking subsection (m); and

      (5) by inserting after subsection (l) the following subsection:

    ‘(m) FUNDING- For the purpose of carrying out this section, there are authorized to be appropriated such sums as may be necessary for fiscal year 2002 and each subsequent fiscal year.’.