I

106TH CONGRESS

1ST SESSION H. R. 886

To require the Secretary of Health and Human Services to submit to Congress a plan to include as a benefit under the Medicare Program coverage

of outpatient prescription drugs, and to provide for the funding of such

benefit.

IN THE HOUSE OF REPRESENTATIVES

MARCH 1, 1999

Mr. FRANK of Massachusetts (for himself, Mr. CARDIN, Mr. GEORGE MILLER

of California, Mr. MOAKLEY, Mr. OBEY, Ms. SLAUGHTER, Mr. MCGOVERN, Mr. SANDERS, Mr. CAPUANO, Mr. OLVER, and Mr. MEEHAN) introduced the following bill; which was referred to the Committee on Ways

and Means, and in addition to the Committee on Commerce, 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 require the Secretary of Health and Human Services

to submit to Congress a plan to include as a benefit

under the Medicare Program coverage of outpatient prescription drugs, and to provide for the funding of such

benefit.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Medicare Prescription

3 Drug Coverage Act of 1999’’.

4 SEC. 2. STUDY AND LEGISLATIVE PROPOSAL TO CONGRESS.

5 (a) STUDY.—The Secretary of Health and Human

6 Services shall conduct a study with respect to the estab7 lishment of an outpatient prescription drug benefit under

8 the Medicare program that provides for full coverage of

9 outpatient prescription drugs for Medicare beneficiaries.

10 (b) ADDITIONAL MATTERS STUDIED.—In conducting

11 the study under subsection (a), the Secretary shall include

12 a determination of whether Federal estate tax revenues,

13 transferred to the Federal Hospital Insurance Trust Fund

14 by reason of the amendments under section 3 of this Act,

15 are sufficient, in excess of the amount required, or insuffi16 cient to defray the costs of such outpatient prescription

17 drug benefit.

18 (c) REPORT TO CONGRESS.—Not later than 180 days

19 after the date of the enactment of this Act, the Secretary

20 shall submit to Congress a report containing a detailed

21 description of the results of the study conducted pursuant

22 to this section, and include in such report a legislative pro23 posal to provide for such outpatient prescription drug ben24 efit.
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1 SEC. 3. TRANSFER OF FEDERAL ESTATE TAX REVENUES TO

2 MEDICARE PROGRAM TO OFFSET COSTS OF

3 PRESCRIPTION DRUG BENEFIT.

4 (a) TRANSFER TO FEDERAL HOSPITAL INSURANCE

5 TRUST FUND.—Section 1817(a) of the Social Security

6 Act (42 U.S.C. 1395i(a)) is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (1),

9 (2) by striking the period at the end of para10 graph (2) and inserting ‘‘; and’’, and

11 (3) by inserting after paragraph (2) the follow12 ing new paragraph:

13 ‘‘(3) the taxes imposed by chapter 11 of the In14 ternal Revenue Code of 1986 (relating to estate

15 taxes) reported to the Secretary of the Treasury or

16 his delegate on tax returns under subtitle F of such

17 Code, as determined by the Secretary of the Treas18 ury by applying the applicable rate of tax under

19 such chapter to such taxable estate.’’.

20 (b) ESTABLISHMENT OF SEPARATE ACCOUNT FOR

21 OUTPATIENT PRESCRIPTION DRUG BENEFIT.—Section

22 1817 of such Act (42 U.S.C. 1395i) is amended by adding

23 at the end the following new subsection:

24 ‘‘(l) OUTPATIENT PRESCRIPTION DRUG ACCOUNT.—

25 ‘‘(1) ESTABLISHMENT.—There is hereby estab26 lished in the Trust Fund an expenditure account to
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1 be known as the ‘Outpatient Prescription Drug Ac2 count’.

3 ‘‘(2) CREDITING OF FUNDS.—The Managing

4 Trustee shall credit to the Outpatient Prescription

5 Drug Account such amounts as may be deposited in

6 the Trust Fund pursuant to subsection (a)(3).

7 ‘‘(3) USE OF FUNDS.—Funds credited to the

8 Outpatient Prescription Drug Account may only be

9 used to pay for outpatient prescription drugs fur10 nished under this title.’’.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section apply to payments received by the Secretary

13 of the Treasury on or after the date of the enactment of

14 this Act for taxes imposed by chapter 11 of the Internal

15 Revenue Code of 1986.

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