II 

109TH CONGRESS 

1ST SESSION S. 1910 

A bill to amend title XVIII of the Social Security Act to provide incentives 

to physicians for writing electronic prescriptions. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 24, 2005 

Mr. SUNUNU introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

A bill to amend title XVIII of the Social Security Act to 

provide incentives to physicians for writing electronic prescriptions. 

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; PURPOSE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Electronic Prescription Drug Act of 2005’’. 

6 (b) PURPOSE.—The purpose of this Act is to provide 

7 a budget neutral financial incentive for the rapid adoption 

8 of electronic prescribing under the new medicare prescrip9 tion drug program. 
2 

•S 1910 IS

1 SEC. 2. ELECTRONIC PRESCRIPTION INCENTIVES. 

2 Section 1860D–42 of the Social Security Act (42 

3 U.S.C. 1395w–152) is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(d) ELECTRONIC PRESCRIPTION INCENTIVES.— 

6 ‘‘(1) PHYSICIAN PAYMENTS.—For each elec7 tronic prescription written by a physician during the 

8 period beginning on January 1, 2006, and ending on 

9 December 31, 2009, the PDP sponsor of a prescrip10 tion drug plan shall make a payment of an amount 

11 equal to— 

12 ‘‘(A) $1.00, minus 

13 ‘‘(B) an amount equal to the percentage of 

14 total claims that consist of electronic claims, as 

15 determined under subparagraphs (A) and (B) 

16 of paragraph (3) (expressed in cents). 

17 ‘‘(2) DISPENSING FEE OFFSET REDUCTION.— 

18 For each non-electronic prescription written by a 

19 physician during the period described in paragraph 

20 (1), the PDP sponsor of a prescription drug plan 

21 shall reduce the dispensing fee established in accord22 ance with section 1860D–4(c)(2)(E) by an amount 

23 equal to— 

24 ‘‘(A) $1.00, minus 

25 ‘‘(B) an amount equal to the percentage of 

26 total claims that consist of non-electronic 
3 

•S 1910 IS

1 claims, as determined under subparagraphs (A) 

2 and (B) of paragraph (3) (expressed in cents). 

3 ‘‘(3) DATA USED.— 

4 ‘‘(A) INITIAL ESTIMATE.—Subject to the 

5 update required under subparagraph (B), in de6 termining the percentage of total claims that 

7 consist of electronic claims and the percentage 

8 of total claims that consist of non-electronic 

9 claims, the Secretary shall use an estimate of 

10 the number of electronic claims and non-elec11 tronic claims that will be submitted as of Janu12 ary 1, 2006. 

13 ‘‘(B) UPDATE.—For each 6 month period 

14 beginning after January 1, 2006, the Secretary 

15 shall update the estimate of the number of elec16 tronic claims and non-electronic claims used to 

17 determine the percentage of total claims that 

18 consist of electronic claims and the percentage 

19 of total claims that consist of non-electronic 

20 claims. 

21 To the extent feasible, the Secretary shall use the 

22 most recent data available, including real-time data 

23 on drug claims submitted under this part, to deter24 mine the percentage of total claims that consist of 
4 

•S 1910 IS

1 electronic claims and the percentage of total claims 

2 that consist of non-electronic claims. 

3 ‘‘(4) REGULATIONS.—The Secretary shall es4 tablish regulations and procedures for carrying out 

5 this subsection.’’. 

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