I 

111TH CONGRESS 

1ST SESSION H. R. 1832 

To amend part D of title XVIII of the Social Security Act to limit the 

increase in premium costs for beneficiaries under the Medicare prescription drug program to no more than the Social Security cost-of-living 

adjustment, and to direct the Secretary of Health and Human Services 

to negotiate lower prescription drug prices on behalf of Medicare beneficiaries. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2009 

Mr. WEXLER (for himself and Ms. KAPTUR) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committee on Ways and Means, 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 amend part D of title XVIII of the Social Security 

Act to limit the increase in premium costs for beneficiaries under the Medicare prescription drug program 

to no more than the Social Security cost-of-living adjustment, and to direct the Secretary of Health and Human 

Services to negotiate lower prescription drug prices on 

behalf of Medicare beneficiaries. 

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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•HR 1832 IH

1 SECTION 1. SHORT TITLE. 

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

3 Drug Affordability Act of 2009’’. 

4 SEC. 2. LIMITING MEDICARE PART D COST INCREASES TO 

5 THE SOCIAL SECURITY COST-OF-LIVING IN6 CREASE. 

7 (a) IN GENERAL.—Section 1860D–11(e)(2) of the 

8 Social Security Act (42 U.S.C. 1395w–111(e)(2)) is 

9 amended by adding at the end the following new subpara10 graph: 

11 ‘‘(E) BID AMOUNT INCREASE BY NO MORE

12 THAN SOCIAL SECURITY COST-OF-LIVING IN13 CREASE.— 

14 ‘‘(i) IN GENERAL.—The Secretary de15 termines that the amount of the bid sub16 mitted for the plan year under subsection 

17 (b) is not greater than— 

18 ‘‘(I) the amount of the bid ap19 proved for such plan for the previous 

20 plan year, increased by 

21 ‘‘(II) the SS COLA percentage. 

22 ‘‘(ii) EXCEPTION FOR A PLAN WITH

23 NO PREVIOUS PLAN YEAR.—The require24 ment of clause (i) shall not apply with re25 spect to a plan for which there was no pre26 vious plan year. 


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•HR 1832 IH

1 ‘‘(iii) SS COLA PERCENTAGE DE2 FINED.—For purposes of this subpara3 graph, the term ‘SS COLA percentage’ 

4 with respect to a plan year in a calendar 

5 year is the percentage increase under sec6 tion 215(i) in primary insurance amounts 

7 effective for December of the second pre8 vious calendar year.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply with respect to plan years begin11 ning on or after January 1, 2010. 

12 SEC. 3. NEGOTIATION OF LOWER COVERED PART D DRUG 

13 PRICES ON BEHALF OF MEDICARE BENE14 FICIARIES. 

15 (a) NEGOTIATION BY HHS.—Section 1860D–11 of 

16 the Social Security Act (42 U.S.C. 1395w–111) is amend17 ed by striking subsection (i) (relating to noninterference) 

18 and inserting the following: 

19 ‘‘(i) NEGOTIATION OF LOWER DRUG PRICES.— 

20 ‘‘(1) IN GENERAL.—Notwithstanding any other 

21 provision of law, the Secretary shall negotiate with 

22 pharmaceutical manufacturers the prices (including 

23 discounts, rebates, and other price concessions) that 

24 may be charged to PDP sponsors and MA organiza25 tions for covered part D drugs for part D eligible inVerDate Nov 24 2008 02:33 Apr 02, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1832.IH H1832

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•HR 1832 IH

1 dividuals who are enrolled under a prescription drug 

2 plan or under an MA–PD plan. 

3 ‘‘(2) NO CHANGE IN RULES FOR

4 FORMULARIES.— 

5 ‘‘(A) IN GENERAL.—Nothing in paragraph 

6 (1) shall be construed to authorize the Sec7 retary to establish or require a particular for8 mulary. 

9 ‘‘(B) CONSTRUCTION.—Subparagraph (A) 

10 shall not be construed as affecting the Sec11 retary’s authority to ensure appropriate and 

12 adequate access to covered part D drugs under 

13 prescription drug plans and under MA–PD 

14 plans, including compliance of such plans with 

15 formulary requirements under section 1860D– 

16 4(b)(3). 

17 ‘‘(3) CONSTRUCTION.—Nothing in this sub18 section shall be construed as preventing the sponsor 

19 of a prescription drug plan, or an organization offer20 ing an MA–PD plan, from obtaining a discount or 

21 reduction of the price for a covered part D drug 

22 below the price negotiated under paragraph (1). 

23 ‘‘(4) SEMI-ANNUAL REPORTS TO THE CON24 GRESS.—Not later than July 1, 2009, and every six 

25 months thereafter, the Secretary shall submit to the 


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1 Committees on Ways and Means, Energy and Com2 merce, and Oversight and Government Reform of 

3 the House of Representatives and the Committee on 

4 Finance of the Senate a report on negotiations con5 ducted by the Secretary to achieve lower prices for 

6 Medicare beneficiaries, and the prices and price dis7 counts achieved by the Secretary as a result of such 

8 negotiations.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall take effect on the date of the enact11 ment of this Act and shall first apply to negotiations and 

12 prices for plan years beginning on January 1, 2010. 

Æ 


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