A bill to require the Secretary of Health and Human Services to establish and maintain an Internet website that is designed to allow consumers to compare the usual and customary prices for covered outpatient drugs sold by retail pharmacies that participate in the medicaid program for each postal Zip Code, and for other purposes.

Summary: Prescription Drug Price Comparison for Savings Act of 2004 - Requires the Secretary of Health and Human Services to establish and maintain an Internet website using the information supplied by participating pharmacies to allow an individual to compare for each zip code the usual and customary prices for a range of strengths and quantities of covered outpatient drugs sold by retail pharmacies that receive Medicaid payments.

Amends title XIX (Medicaid) of the Social Security Act to direct States to: (1) require a participating pharmacy, concurrent with filling a prescription for an individual receiving assistance under Medicaid, to report to the State its zip code and the usual and customary price for the covered outpatient drug as of the date the prescription is filled; and (2) submit this information to the Secretary to enable the Secretary to post monthly updates on the website.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prescription Drug Price Comparison 
for Savings Act of 2004''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Access to prescription drugs is important to all 
        Americans.
            (2) Many individuals cannot afford to purchase the drugs 
        prescribed by their doctors. Others skip doses or split pills 
        contrary to their doctor's orders because they cannot afford to 
        refill their prescriptions.
            (3) Individuals who use their limited financial resources 
        to obtain needed drugs may do so by foregoing other 
        expenditures important to their health and well-being.
            (4) Among the objectives of the medicaid program set forth 
        in section 1901 of the Social Security Act (42 U.S.C. 1396) is 
        the objective to enable each State to furnish services to help 
        low-income families and aged, blind, or disabled individuals 
        ``attain or retain capability for independence or self-care''.
            (5) Some States, such as Maryland, have established 
        interactive Internet websites that use the usual and customary 
        price information reported by pharmacies participating in the 
        State's medicaid program to allow all residents of the State to 
        comparison shop for prescription drugs.
            (6) Requiring all States to collect from pharmacies that 
        participate in the medicaid program the usual and customary 
        price for prescription drugs sold by the pharmacies and to 
        report that information to the Secretary of Health and Human 
        Services in order that a national, interactive Internet website 
        may be established and maintained for individuals to use to 
        comparison shop for prescription drugs is consistent with the 
        objectives of the medicaid program.

SEC. 3. STATE PLAN REQUIREMENT TO COLLECT AND REPORT USUAL AND 
              CUSTOMARY PRICES FOR COVERED OUTPATIENT DRUGS SOLD UNDER 
              THE MEDICAID PROGRAM.

    Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is 
amended--
            (1) in paragraph (66), by striking ``and'' at the end;
            (2) in paragraph (67), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (67), the following:
            ``(68) provide that the State shall--
                    ``(A) require each retail pharmacy which receives 
                payments under the plan to report to the State 
                concurrent with the filling of a prescription for a 
                covered outpatient drug (as defined in section 
                1927(k)(2)) for an individual receiving medical 
                assistance under this title--
                            ``(i) the usual and customary price (as 
                        defined in section 1927(k)(10)) for the 
                        strength, quantity, and dosage form of the 
                        covered outpatient drug, as of the date the 
                        prescription is filled; and
                            ``(ii) the postal Zip Code in which the 
                        retail pharmacy is located; and
                    ``(B) submit the information reported under 
                subparagraph (A) to the Secretary on such frequent 
                basis as the Secretary shall require so as to allow for 
                monthly updates of the information posted on the 
                Internet website required to be established under 
                section 5 of the Prescription Drug Price Comparison for 
                Savings Act of 2004.''.

SEC. 4. USUAL AND CUSTOMARY PRICES FOR COVERED OUTPATIENT DRUGS.

    (a) Definition.--Section 1927(k) of the Social Security Act (42 
U.S.C. 1396r-8(k)) is amended by adding at the end the following:
            ``(10) Usual and customary price.--The term `usual and 
        customary price' means the price a retail pharmacy would charge 
        an individual who does not have health insurance coverage for 
        purchasing a specific strength, quantity, and dosage form of a 
        covered outpatient drug.''.
    (b) Inclusion of Information in Annual Report to Congress.--Section 
1927(i)(2)(E) of the Social Security Act (42 U.S.C. 1396r-8(i)(2)(E)) 
is amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively; and
            (2) by inserting after subparagraph (D), the following:
                    ``(E) the range of usual and customary prices for 
                specific strengths, quantities, and dosage forms of 
                covered outpatient drugs, disaggregated by postal Zip 
                Code;''.

SEC. 5. REQUIREMENT TO ESTABLISH AND MAINTAIN PRESCRIPTION DRUG PRICE 
              COMPARISON WEBSITE.

    (a) Authority.--Not later than 6 months after the date of enactment 
of this Act, the Secretary shall establish and arrange for the 
maintenance of an Internet website that is designed to allow an 
individual to compare the usual and customary prices for a range of 
strengths and quantities of covered outpatient drugs sold by retail 
pharmacies that receive payments under the medicaid program for each 
postal Zip Code that corresponds to an area of a State.
    (b) Requirements.--The Internet website required to be established 
and maintained under this section shall consist of--
            (1) the information submitted to the Secretary in 
        accordance with section 1902(a)(68)(B) of the Social Security 
        Act (42 U.S.C. 1396a(a)(68)(B)) (as added by section 3(a)(3)); 
        and
            (2) such other information as the Secretary determines is 
        appropriate.
    (c) Definitions.--In this section:
            (1) Covered outpatient drug.--The term ``covered outpatient 
        drug'' has the meaning given that term in section 1927(k)(2) of 
        the Social Security Act (42 U.S.C. 1396r-8(k)(2)).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' has the meaning given that 
        term for purposes of title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).