II 

109TH CONGRESS 

2D SESSION S. 2181 

To amend title XIX of the Social Security Act to provide for an offset 

from the Medicaid clawback for State prescription drug expenditures 

for covered part D drugs for Medicare beneficiaries. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 20, 2006 

Mr. LAUTENBERG (for himself, Ms. SNOWE, Mr. SCHUMER, Mr. COLEMAN, 

Mrs. FEINSTEIN, Mr. PRYOR, Mr. DEWINE, Mrs. BOXER, Mr. MENENDEZ, Ms. COLLINS, Mr. DAYTON, Mr. REED, Mr. JEFFORDS, Mrs. LINCOLN, Mr. LEAHY, Mr. WYDEN, Ms. STABENOW, Mr. JOHNSON, Mr. 

KENNEDY, Mr. DORGAN, Mr. LIEBERMAN, Mrs. CLINTON, Mr. CHAFEE, 

and Mr. DODD) introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend title XIX of the Social Security Act to provide 

for an offset from the Medicaid clawback for State prescription drug expenditures for covered part D drugs 

for Medicare beneficiaries. 

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 State Reim5 bursement Act of 2006’’. 
2 

•S 2181 IS

1 SEC. 2. FEDERAL RESPONSIBILITY FOR STATE PRESCRIP2 TION DRUG EXPENDITURES FOR COVERED 

3 PART D DRUGS FOR MEDICARE BENE4 FICIARIES. 

5 Section 1935(c) of the Social Security Act (42 U.S.C. 

6 1396v(c)) is amended— 

7 (1) in paragraph (1)(A), by striking ‘‘Each of 

8 the 50 States’’ and inserting ‘‘Subject to paragraph 

9 (7), each of the 50 States’’; and 

10 (2) by adding at the end the following new 

11 paragraph: 

12 ‘‘(7) OFFSET FOR STATE PRESCRIPTION DRUG

13 EXPENDITURES FOR COVERED PART D DRUGS FOR

14 MEDICARE BENEFICIARIES.— 

15 ‘‘(A) IN GENERAL.—The amount of pay16 ment for a month (beginning with January 

17 2006) under paragraph (1) shall be reduced by 

18 an amount equal to the sum of— 

19 ‘‘(i) the amount (as documented by 

20 the State) that the State expended during 

21 the month for payment for covered part D 

22 drugs for part D eligible individuals who 

23 are enrolled in a prescription drug plan 

24 under part D of title XVIII but were un25 able to access on a timely basis prescrip-
3 

•S 2181 IS

1 tion drug benefits to which they were enti2 tled under such plan; and 

3 ‘‘(ii) interest on such amount (for the 

4 period beginning on the day after the date 

5 on which an expenditure described in sub6 paragraph (A) is made and ending on the 

7 date on which payment is made under 

8 paragraph (1)) at a rate equal to the 

9 weighted average of interest on 3-month 

10 marketable Treasury securities determined 

11 for such period, increased by 0.1 percent12 age point. 

13 ‘‘(B) RECOVERY OF REDUCED PAYMENT

14 FROM PRESCRIPTION DRUG PLANS.—The Sec15 retary shall provide for recovery of payment re16 ductions made under subparagraph (A) from 

17 those prescription drug plans under part D of 

18 title XVIII or MA–PD plans under part C of 

19 such title that would otherwise be responsible 

20 for the expenditures described in subparagraph 

21 (A)(i). Any such amounts recovered shall be de22 posited into the Medicare Prescription Drug Ac23 count in the Federal Supplementary Medical 

24 Insurance Trust Fund.’’. 

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