To amend title XVIII of the Social Security Act to authorize the Secretary of Health and Human Services to endorse prescription drug discount cards for use by Medicare beneficiaries.

Summary: Medicare Rx Drug Discount Act of 2003 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to: (1) endorse any Medicare prescription drug discount card program that meets specified criteria; and (2) inform Medicare beneficiaries about such programs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Rx Drug Discount Act of 
2003''.

SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD ENDORSEMENT PROGRAM.

    Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is 
amended by inserting after section 1806 the following new sections:

     ``medicare prescription drug discount card endorsement program

    ``Sec. 1807. (a) In General.--The Secretary shall establish a 
program--
            ``(1) to endorse prescription drug discount card programs 
        that meet the requirements of this section; and
            ``(2) to make available to medicare beneficiaries 
        information regarding such endorsed programs.
    ``(b) Requirements for Endorsement.--The Secretary may not endorse 
a prescription drug discount card program under this section unless the 
program meets the following requirements:
            ``(1) Savings to medicare beneficiaries.--The program 
        passes on to medicare beneficiaries who enroll in the program 
        discounts on prescription drugs, including discounts negotiated 
        with manufacturers.
            ``(2) Prohibition on application only to mail order.--The 
        program applies to drugs that are available other than solely 
        through mail order.
            ``(3) Beneficiary services.--The program provides 
        pharmaceutical support services, such as education and 
        counseling, and services to prevent adverse drug interactions.
            ``(4) Information.--The program makes available to medicare 
        beneficiaries through the Internet and otherwise information, 
        including information on enrollment fees, prices charged to 
        beneficiaries, and services offered under the program, that the 
        Secretary identifies as being necessary to provide for informed 
        choice by beneficiaries among endorsed programs.
            ``(5) Demonstrated experience.--The entity operating the 
        program has demonstrated experience and expertise in operating 
        such a program or a similar program.
            ``(6) Quality assurance.--The entity has in place adequate 
        procedures for assuring quality service under the program.
            ``(7) Operation of assistance program.--The entity meets 
        such requirements relating to solvency, compliance with 
        financial reporting requirements, audit compliance, and 
        contractual guarantees as the Secretary finds necessary for 
        participation.
            ``(8) Enrollment fees.--The program may charge an annual 
        enrollment fee, but the amount of such annual fee may not 
        exceed $25.
            ``(9) Additional beneficiary protections.--The program 
        meets such additional requirements as the Secretary identifies 
        to protect and promote the interest of medicare beneficiaries, 
        including requirements that ensure that beneficiaries are not 
        charged more than the lower of the negotiated retail price or 
        the usual and customary price.
The prices negotiated by a prescription drug discount card program 
endorsed under this section shall (notwithstanding any other provision 
of law) not be taken into account for the purposes of establishing the 
best price under section 1927(c)(1)(C).
    ``(c) Program Operation.--The Secretary shall operate the program 
under this section consistent with the following:
            ``(1) Promotion of informed choice.--In order to promote 
        informed choice among endorsed prescription drug discount card 
        programs, the Secretary shall provide for the dissemination of 
        information which compares the prices and services of such 
        programs in a manner coordinated with the dissemination of 
        educational information on Medicare+Choice plans under part C.
            ``(2) Oversight.--The Secretary shall provide appropriate 
        oversight to ensure compliance of endorsed programs with the 
        requirements of this section, including verification of the 
        discounts and services provided.
            ``(3) Use of medicare toll-free number.--The Secretary 
        shall provide through the 1-800-medicare toll free telephone 
        number for the receipt and response to inquiries and complaints 
        concerning the program and programs endorsed under this 
        section.
            ``(4) Sanctions for abusive practices.--The Secretary may 
        implement intermediate sanctions or may revoke the endorsement 
        of a program in the case of a program that the Secretary 
        determines no longer meets the requirements of this section or 
        that has engaged in false or misleading marketing practices.
            ``(5) Enrollment practices.--A medicare beneficiary may not 
        be enrolled in more than one endorsed program at any time. A 
        medicare beneficiary may change the endorsed program in which 
        the beneficiary is enrolled, but may not make such change until 
        the beneficiary has been enrolled in a program for a minimum 
        period of time specified by the Secretary.
    ``(d) Transition.--The Secretary shall provide for an appropriate 
transition and discontinuation of the program under this section at the 
time outpatient prescription drug benefits first become available under 
this title.
    ``(e) Endorsement Condition.--The Secretary shall require, as 
condition of endorsement under of a prescription drug discount card 
program under this section that the program implement policies and 
procedures to safeguard the use and disclosure of program 
beneficiaries' individually identifiable health information in a manner 
consistent with the Federal regulations (concerning the privacy of 
individually identifiable health information) promulgated under section 
264(c) of the Health Insurance Portability and Accountability Act of 
1996.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the program 
under this section.''.