II 

109TH CONGRESS 

2D SESSION S. 2313 

To amend title XVIII of the Social Security Act to permit medicare beneficiaries enrolled in prescription drug plans and MA–PD plans that 

change their formularies or increase drug prices to enroll in other plans. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2006 

Mr. DURBIN (for himself and Mr. DAYTON) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend title XVIII of the Social Security Act to permit 

medicare beneficiaries enrolled in prescription drug plans 

and MA–PD plans that change their formularies or increase drug prices to enroll in other plans. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Medicare Drug Honest 

5 Pricing Act of 2006’’. 
2 

•S 2313 IS

1 SEC. 2. PERMITTING MEDICARE BENEFICIARIES EN2 ROLLED IN PRESCRIPTION DRUG PLANS AND 

3 MA–PD PLANS THAT CHANGE THEIR 

4 FORMULARIES OR INCREASE DRUG PRICES 

5 TO ENROLL IN OTHER PLANS. 

6 (a) SPECIAL ENROLLMENT PERIOD.— 

7 (1) IN GENERAL.—Section 1860D–1(b)(3) of 

8 the Social Security Act (42 U.S.C. 1395w– 

9 101(b)(3)) is amended by adding at the end the fol10 lowing new subparagraphs: 

11 ‘‘(F) ENROLLMENT UNDER PLANS THAT

12 CHANGE THEIR FORMULARIES.—In the case of a 

13 part D eligible individual who is enrolled in a pre14 scription drug plan that uses a formulary, if the 

15 plan removes a covered part D drug from its for16 mulary or changes the preferred or tiered cost-shar17 ing status of such a drug and the individual is ad18 versely affected by such change, there shall be a 60- 

19 day special enrollment period for the individual be20 ginning on the date on which the individual receives 

21 a notice of such removal or change. 

22 ‘‘(G) ENROLLMENT UNDER PLANS THAT IN23 CREASE NEGOTIATED PRICES.—In the case of a part 

24 D eligible individual who is enrolled in a prescription 

25 drug plan in which the negotiated price used for 

26 payment for any covered part D drug increases by 
3 

•S 2313 IS

1 10 percent or more from the negotiated price used 

2 for payment for the drug as of January 1 of the 

3 year (as disclosed to the Secretary pursuant to sec4 tion 1860D–2(d)(4)(A)).’’. 

5 (2) INFORMING BENEFICIARIES OF NEGO6 TIATED PRICES.—Section 1860D–2(d) of the Social 

7 Security Act (42 U.S.C. 1395w–102(d)) is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(4) INFORMING BENEFICIARIES OF NEGO10 TIATED PRICES.— 

11 ‘‘(A) REQUIRING PLANS TO DISCLOSE NE12 GOTIATED PRICES TO THE SECRETARY.—Not 

13 later than November 8 of each year (beginning 

14 with 2006), each sponsor of a prescription drug 

15 plan shall disclose to the Secretary (in a man16 ner specified by the Secretary) the negotiated 

17 price used for payment for each covered part D 

18 drug covered under the plan that will apply 

19 under the plan on January 1 of the subsequent 

20 year. 

21 ‘‘(B) SECRETARY TO MAKE NEGOTIATED

22 PRICES AVAILABLE ON THE CMS WEBSITE.— 

23 Not later than November 15 of each year (be24 ginning with 2006), the Secretary shall make 

25 information disclosed under subparagraph (A) 
4 

•S 2313 IS

1 available to the public through the Internet 

2 website of the Centers for Medicare & Medicaid 

3 Services. 

4 ‘‘(C) REQUIRING PLANS TO INFORM BENE5 FICIARIES OF JANUARY 1 NEGOTIATED

6 PRICE.—Not later than January 10 of each 

7 year (beginning with 2007), each sponsor of a 

8 prescription drug plan shall appropriately in9 form (as determined by the Secretary) part D 

10 eligible individuals enrolled in the plan for the 

11 year of the negotiated price used for payment 

12 for each covered part D drug that is covered 

13 under the plan that was disclosed to the Sec14 retary under subparagraph (A).’’. 

15 (b) REGULATIONS.—The Secretary of Health and 

16 Human Services shall promulgate regulations to carry out 

17 the amendments made by this section. 

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

19 subsection (a) shall take effect on January 1, 2007. 

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