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
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.
This Act may be cited as the
Prescription Drug and Health
Improvement Act of 2011.
Negotiating fair prices for medicare prescription drugs
Negotiating fair prices
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:
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.
The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act.
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.