I 

111TH CONGRESS 

1ST SESSION H. R. 1725 

To amend title XIX of the Social Security Act to require, at the option 

of a State, drug manufacturers to pay rebates to State prescription 

drug discount programs as a condition of participation in a rebate 

agreement for outpatient prescription drugs under the Medicaid Program. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2009 

Mr. VAN HOLLEN (for himself, Ms. PINGREE of Maine, Mr. RUPPERSBERGER, 

Mr. KRATOVIL, and Mr. RAHALL) introduced the following bill; which was 

referred to the Committee on Energy and Commerce 

A BILL 

To amend title XIX of the Social Security Act to require, 

at the option of a State, drug manufacturers to pay 

rebates to State prescription drug discount programs 

as a condition of participation in a rebate agreement 

for outpatient prescription drugs under the Medicaid 

Program. 

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 ‘‘Voluntary State Dis5 count Prescription Drug Plan Act of 2009’’. 


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1 SEC. 2. OPTIONAL STATE PRESCRIPTION DISCOUNT PRO2 GRAM. 

3 (a) IN GENERAL.—Section 1927(a) of the Social Se4 curity Act (42 U.S.C. 1396r–8(a)) is amended by adding 

5 at the end the following: 

6 ‘‘(8) REQUIREMENTS RELATING TO AGREE7 MENTS FOR DRUGS PROCURED BY INDIVIDUALS

8 THROUGH OPTIONAL STATE PRESCRIPTION DRUG

9 DISCOUNT PROGRAMS.— 

10 ‘‘(A) IN GENERAL.—A manufacturer meets 

11 the requirements of this paragraph if the manu12 facturer enters into an agreement with the 

13 State to make rebate payments for drugs cov14 ered by a State prescription drug discount pro15 gram in the same amounts as are paid by the 

16 manufacturer to the State for such drugs under 

17 a rebate agreement described in subsection (b). 

18 The previous sentence shall only apply to a 

19 State that has elected to establish an optional 

20 State prescription drug discount program and 

21 to apply the provisions of such sentence. 

22 ‘‘(B) OPTIONAL STATE PRESCRIPTION

23 DRUG DISCOUNT PROGRAM DEFINED.— 

24 ‘‘(i) IN GENERAL.—In this paragraph, 

25 the term ‘optional State prescription drug 

26 discount program’ means a State program 


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1 under which, with respect to a rebate pe2 riod, not less than the amount equal to 95 

3 percent of all the rebates paid to the State 

4 under agreements entered into under sub5 paragraph (A) during such period are pro6 vided to eligible State residents in the form 

7 of discounted prices for the purchase of 

8 outpatient prescription drugs. 

9 ‘‘(ii) ELIGIBLE STATE RESIDENT.— 

10 For purposes of clause (i), the term ‘eligi11 ble State resident’ means an individual 

12 who is a State resident and whose income 

13 does not exceed a percentage (specified 

14 under the optional State prescription drug 

15 discount program, but not to exceed 300 

16 percent) of the income official poverty line 

17 (as defined by the Office of Management 

18 and Budget, and revised annually in ac19 cordance with section 673(2) of the Omni20 bus Budget Reconciliation Act of 1981) 

21 applicable to a family of the size involved. 

22 ‘‘(iii) ADDITIONAL SUBSIDIES.—Noth23 ing in this subparagraph shall be construed 

24 as— 


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1 ‘‘(I) requiring a State to expend 

2 State funds to carry out a State pre3 scription drug discount program; or 

4 ‘‘(II) prohibiting a State from 

5 electing to contribute State funds to a 

6 State prescription drug discount pro7 gram to provide greater subsidies to 

8 eligible State residents for outpatient 

9 prescription drugs covered under the 

10 program. 

11 ‘‘(iv) NO SECTION 1115 WAIVER RE12 QUIRED TO IMPLEMENT.—Nothing in this 

13 subparagraph shall be construed as requir14 ing a State to obtain a waiver under sec15 tion 1115 or otherwise of any requirement 

16 of this title to implement an optional State 

17 prescription drug discount program. 

18 ‘‘(C) NO OFFSET AGAINST MEDICAL AS19 SISTANCE.—Amounts received by a State under 

20 an agreement entered into under subparagraph 

21 (A) in any quarter shall not be considered to be 

22 a reduction in the amount expended under the 

23 State plan in the quarter for medical assistance 

24 for purposes of section 1903(a)(1).’’. 


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1 (b) CONFORMING AMENDMENT.—The first sentence 

2 of section 1927(a)(1) of such Act (42 U.S.C. 1396r– 

3 8(a)(1)) is amended, by striking ‘‘and paragraph (6)’’ and 

4 inserting ‘‘, paragraph (6), and paragraph (8)’’. 

Æ 


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