II

106TH CONGRESS

1ST SESSION S. 696

To require the Secretary of Health and Human Services to submit to Congress a plan to include as a benefit under the medicare program coverage

of outpatient prescription drugs, and to provide for the funding of such

benefit.

IN THE SENATE OF THE UNITED STATES

MARCH 24, 1999

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

referred to the Committee on Finance

A BILL

To require the Secretary of Health and Human Services

to submit to Congress a plan to include as a benefit

under the medicare program coverage of outpatient prescription drugs, and to provide for the funding of such

benefit.

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 Prescription

5 Drug Coverage Act of 1999’’.
2

•S 696 IS

1 SEC. 2. STUDY AND LEGISLATIVE PROPOSAL TO CONGRESS.

2 (a) STUDY.—The Secretary of Health and Human

3 Services shall conduct a study with respect to the estab4 lishment of an outpatient prescription drug benefit under

5 the medicare program that provides for full coverage of

6 outpatient prescription drugs for medicare beneficiaries.

7 (b) ADDITIONAL MATTERS STUDIED.—In conducting

8 the study under subsection (a), the Secretary of Health

9 and Human Services shall include a determination of

10 whether Federal estate tax revenues, transferred to the

11 Federal Hospital Insurance Trust Fund by reason of the

12 amendments made by section 3 of this Act, are sufficient,

13 in excess of the amount required, or insufficient to defray

14 the costs of such outpatient prescription drug benefit.

15 (c) REPORT TO CONGRESS.—Not later than 180 days

16 after the date of the enactment of this Act, the Secretary

17 of Health and Human Services shall submit to Congress

18 a report containing a detailed description of the results

19 of the study conducted pursuant to this section, and in20 clude in such report a legislative proposal to provide for

21 such outpatient prescription drug benefit.
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•S 696 IS

1 SEC. 3. TRANSFER OF FEDERAL ESTATE TAX REVENUES TO

2 MEDICARE PROGRAM TO OFFSET COSTS OF

3 PRESCRIPTION DRUG BENEFIT.

4 (a) TRANSFER TO FEDERAL HOSPITAL INSURANCE

5 TRUST FUND.—Section 1817(a) of the Social Security

6 Act (42 U.S.C. 1395i(a)) is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (1),

9 (2) by striking the period at the end of para10 graph (2) and inserting ‘‘; and’’, and

11 (3) by inserting after paragraph (2) the fol12 lowing new paragraph:

13 ‘‘(3) the taxes imposed by chapter 11 of the In14 ternal Revenue Code of 1986 with respect to estates

15 of citizens or residents reported to the Secretary of

16 the Treasury or his delegate on tax returns under

17 subtitle F of such Code, as determined by the Sec18 retary of the Treasury by applying the applicable

19 rate of tax under such chapter to such estate.’’.

20 (b) ESTABLISHMENT OF SEPARATE ACCOUNT FOR

21 OUTPATIENT PRESCRIPTION DRUG BENEFIT.—Section

22 1817 of such Act (42 U.S.C. 1395i) is amended by adding

23 at the end the following new subsection:

24 ‘‘(l) OUTPATIENT PRESCRIPTION DRUG ACCOUNT.—

25 ‘‘(1) ESTABLISHMENT.—There is hereby estab26 lished in the Trust Fund an expenditure account to
4

•S 696 IS

1 be known as the ‘Outpatient Prescription Drug Ac2 count’.

3 ‘‘(2) CREDITING OF FUNDS.—The Managing

4 Trustee shall credit to the Outpatient Prescription

5 Drug Account such amounts as may be deposited in

6 the Trust Fund pursuant to subsection (a)(3).

7 ‘‘(3) USE OF FUNDS.—Funds credited to the

8 Outpatient Prescription Drug Account may only be

9 used to pay for outpatient prescription drugs fur10 nished under this title.’’.

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

12 this section apply to payments received by the Secretary

13 of the Treasury on or after the date of the enactment of

14 this Act for taxes imposed by chapter 11 of the Internal

15 Revenue Code of 1986.

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